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16 000 jobs created following SA’s R1.2trn investment bid

Many of the new investments will be located in various special economic zones.

More than 16 000 direct jobs have been created to date since the government announced last year its intention to mobilise more than R1.2 trillion in new investments over the next five years, said President Cyril Ramaphosa on Tuesday.

Speaking at the launch of the Tshwane Automotive Special Economic Zone (SEZ) in Silverton in Pretoria, Ramaphosa said many of these investments will be located in various special economic zones across the country.

The number of jobs created excludes construction jobs, indirect jobs and additional jobs from confirmed investments where projects are still under construction.

Ramaphosa said the launch of the Tshwane Automotive SEZ is yet another affirmation of growing investor confidence in South Africa.

He said that with the economic situation confronting the country, people may have been tempted to think South Africa would not be able to attract investors – but about 1 500 potential investors will be attending the second South African Investment Conference in Johannesburg on Wednesday.

“That is a phenomenal success for our country. The message we want to communicate is that South Africa is a competitive and proven investment destination.

“We also want to reiterate that we welcome and encourage greater partnership between government and the private sector,” he said.

Read: Coega aims to become the champion of socio-economic development

Ramaphosa said domestic and international investors at the investment conference will be presented with the vast opportunities that exist in South Africa.

“Much as there is possible gloom, some doubt, some dismay, South Africa is still proving to be a very attractive investment destination,” he said.

‘Firm path’

Ramaphosa said the government is on a firm path to rebuild the country and return its economy to higher levels of productivity, and to transform it to make it much more inclusive.

Restoring the confidence of both domestic and foreign investors is the lynchpin of the country’s economic reform agenda, he said.

Ramaphosa said government has prioritised supporting, developing and expanding its SEZ programme and is going to use SEZs as part of generating growth in the economy.

He added that SEZs will play a key role in driving the government’s bold new industrial strategy, which is aimed at reigniting economic activity and unleashing private investment in sectors with high growth potential, including the automotive sector.

Ramaphosa said South Africa needs to ensure it consolidates that attractiveness as an investment destination and ensures the country can attract investors, who could invest anywhere.

The $11bn SA lost to Brazil

He said he would forever remember one potential investor who invested $11 billion in Brazil after receiving a lukewarm reception in South Africa. The investor was not offered much assistance and was informed of a number of regulatory barriers.

“We have got to change that approach,” he said.

“We have to have the approach that Gauteng, Tshwane and Dti [Department of Trade and Industry] had to have this facility [SEZ] established here, to have the ‘can do’ approach where we are attracting investors, where we bring them in and where we demonstrate … that this is the best home for their investment.”

Ramaphosa said the government is introducing a new approach in the implementation of SEZs to enhance their impact, which includes resolving regulatory hurdles that have been obstacles to investors.

Processes such as securing environmental impact authorisations, water use licences and the like will now be fast-tracked, he said.

The $10bn SA lost to red tape

Ramaphosa said it has been taking up to three years to resolve water licence issues in South Africa. He added that there was an investor who wanted to invest up to R10 billion but was unable to do so because they could not get a water licence.

“Now, in sitting down with labour, residents and [the] regulator for water, we will be able to resolve that and are saying that water licences should not take more than three months,” he said.

Ramaphosa said this is the progress government is making in resolving all the regulatory logjams.

He added that entrepreneurs are fast, nimble, agile, fast-footed and get things done, and this is the psyche government would like to inculcate in all South Africans.

“I want to unlock the energy of our civil servants and all of us,” he said. “Let us get South Africa working and moving. Let us shake this country into shape and move forward.”

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Hey Squirrel – please also inform all these “investors” that:

1. 27% of you money(company) must be given to a black person/s upfront.
2. You cannot employ who you want to – it has to be a specific skin colour.
3. Lack of experience is no reason not to hire a person.
4. Your board and senior management need to be made up of designated groups and sexes,not necessarily those people that you deem correct and capable of the job.
5. The government reserves the right to expropriate your land without compensation at any time in the future.
If it is not done “legally” by the government the local inhabitants will do it in any case.
Once you have hired a person it will be impossible to get rid of him/her !!!

In other words we embrace new investments here !!!!!

so, 16000 jobs have already been created, but the investment locations have still to be determined. does not compute. maybe CR should appoint Dynamo as an economic advisor.

I thought the 5 year goal is $100 billion? How is that R 1.2 trillion?

Or has the goal posts been shifted?

In this alternative world of corrupted cadre a couple of millions, billions means nothing, just figures bandied about to impress their foolish supporters. In any way, who need Unionised Mega Factory’s, except Unions of course. It is the small & medium sized enterprises who keep themselves & even the economy going

The true figure is one hundred and seventy eleventy…..no, listen carefully, fourteenly million trillion gazillion.

Just heard him explain the figures at the conference.

It was $100 billion and that was R1.2 trillion at the exchange rate at the time.

Is he telling the FDI investors that our currency has depreciated by almost 25% in one year?

Not sure it is a good thing to point that out. Even if it is the truth.

If Special Economic Zones are so special, why not simply transform the whole country into an SEZ? These zones offer tax benefits, lower rates and taxes, less red tape, better delivery of services, no BEE or EE requirements and no expropriation without compensation.

If these SEZ’s are successful in creating jobs, what do we then call the business environment outside of the SEZ? Where the ANC implements their failed strategies outside of these SEZ’s, it is a disaster zone. A Socialist Disaster Zone.

I have recently visited our local EZ Huge. Impressive fence and massive entrance gate and nothing inside. In the EZ “office” more clueless overpaid people sitting around in aircon office doing nothing. Biggest issue was because I parked my car wrong way around in parking area. True. Huge nothingness.

Local business is discriminated against, but foreign business gets tax breaks and rah rah welcomes? Its better to be a foreign business it seems.

Only if you’re not African! #xenephobia

Yesterday he turned the first sod, now there are all these jobs. I don’t understand all the crooked tenders have to still be awarded, lots of cash in brown paper packets. We a long way from even 1 job.

“He added that entrepreneurs are fast, nimble, agile, fast-footed and get things done …”

That’s actually a good description of SA’s state capturers in comparison with SA’s justice system.

I don’t believe a word that comes out of his mouth at the moment. And why are we only looking at these measures now? The problems are not new. But I am heartened that Cyril’s cadres appear to be of a better calibre than Zuma’s.

We are trying to build a pipe that will cross a river at a bridge. We need a water use licence for this even though we aren’t using any water.

Been told it will take 300 days

I applied for a copy of my late Dad’s birth certificate in June last year………………………….if they could just dedicate one person to the task it would be a job created.

Agree – but sadly if government dedicated someone to the task it doesn’t mean you will receive your certificate. Best of luck

Funny, how all these new jobs created have not lowered the number of unemployed people.

The man is delusional.

A little more critical journalism would be much appreciated. Most of us are not naive!

Agreed.

And if the man’s pants is on fire allow commentators to point it out. Don’t keep protecting what is not the truth with censorship.

16000 out of 6.73 million unemployed which is less than one quarter of one per cent. 1 in 420 unemployed now has a job. The other 419 are still unemployed. I suspect this figure will be lost in the noise.

If only they ANC had the gonads to free the market. Defang the unions and repeal legislation that discourages job (and wealth) creation.

Also, the 16000 POTENTIAL jobs must be seen in context with thousands of REAL JOBS LOST, and REAL money(opportunity) wasted. Still, the thieves are part of the administration. My feels more at home outside of this jurisdiction

Sorry but don’t believe a word of it. Recall how tens of thousands of jobs were going to be created as a consequence of the infamous arms deal? 50,000 new jobs or so were claimed as part of the “off-set package”, but then after several years, absolutely NOTHING HAPPENED. Only thing that did happen was old Zupta (S.A’s greatest victim) & associates got brown envelopes.

with overstaffed eskom still in a power supply and even deeper financial crisis (forget the so call splitting up into 3 entities as a solution to either of the problems) plus still a water scarcity / pollution directly due to the governments incapacity to do its basic work, 16000 jobs created overnight is day dreaming – it is one thing to convince foreign investors to invest, the actual job need arises much later if at all

R 1.2 trillion/ 16 000 jobs = R75 million per job? Can this be true? If so, it seriously defies logic.

“16,000 new jobs”

Let me guess… At Eishkom??

If ever the ANC create jobs, no one will be able to do them, as physically getting up to go to work will be a problem after so long of not doing so! And, after combining the Grant income and crime income, the job will not be worth going to!!! Seeing this already when offering menial work out there! An employment spiral forming!

I think in ANC Speak , every new recipient of a state grant is regarded as another “earner” therefore Employed . !

It would appear that anti-ANC sentiment now gets blocked on here

Pres CR is trying, give him that.

However, he is focusing on formal, second world jobs in a say 70% third world country. Focusing on the informal sector and rural areas will produce much better results.

Also, it is all in vain as long as the country creates more people than jobs. We are addressing half the problem.

So it takes R75 million to generate 1 job?

Give me the R75 million and keep the job, take the 45% tax it’s fine.

R 1.2 trillion? That’s R75 million per job. They could have given R7.5 million to 160 000 workers simply to live of the interest for the rest of their lives. Find a cure for Stupidity. Please.

One has to give credit where it is due. The President is working under very challenging conditions and with many stakeholders often with conflicting objectives and philosophies. The country is also threatened by low or no economic growth. The globe is also not growing. Debt is spiraling out of control and predicted to be about 70% in 2022 by the FM in the MTBPS. The President must also negotiate the Economic Recovery Plan by the FM recently shared for public comment which was due back mid September. Needless to say that some of the varied stakeholders were not pleased with Tito Mboweni’s “lets get on with it attitude”. The power situation also creates doubt to investors. Moodys gave SA a seriously challenging timeline of 3 months which will likely be unmet. What chances are there that between now and March next year South Africa would have dealt with Moodys concerns? I think given the speed at which we generally do things and sometimes not for wrong measure but because the state moves at a slower pace like in most countries in the globe. The other fundamental challenge is that South Africa, though striving to be one nation, has citizen with many varied views instead of sharing the same vision that of growing South Africa’s and Africa’s economy. In a nutshell there will always be a dissatisfied soul in South Africa also given the limitation of resources. Perhaps the SEZs are the way to go to try and spearhead growth and create the so much needed employment opportunities. We must appreciate any move to spread these. A week or more ago, Mandeni had a similar focus. So thank you Mr President.
It is unfortunate that one investor who had $10 billion decided to go to Brazil instead of investing in our country. The sad part for me Mr President is that you acknowledge that this investor chose Brazil because of the many regulations specifically water licensing in this instance. However, regulations must be something firmly in your control and should be amended to meet with investors requirements.
The last niggling thing for me Mr President is that you allege 16000 direct jobs have been created. Where are these jobs? Yes we are desperate for jobs, we would appreciate any job we can get. But let’s be realistic. Let us also make promises we can meet and not just mention things for the sake of mentioning them. 16000 jobs, though a positive contribution to reducing unemployment cannot even deal with Boipatong, let alone Soweto. It is a start nonetheless, so it is appreciated.
Last subject which will also help create employment and sustain SMEs is payment of SMEs on time. I know this is a matter you are very passionate about Mr President as a former entrepreneur yourself. This matter is a critical part of the Thuma Mina SONA. More than a year later, almost two years now, Mr President, this is not happening. FDI must find local businesses thriving. Otherwise your hard work in attracting FDI will all be in vain if they find local businesses dead because they are not paid on time by the government.

The Global economy grew by 3.6% in 2018. The world is doing fine. SA grew with 0.8% over the same period.

I agree 110% with you Beeshaas. The globe comes off a challenging period with low or no growth for the last few years though. cf 2019
World Economic Outlook, October 2019: Global Manufacturing Downturn, Rising Trade Barriers

When your president tells you that he will create jobs, number one, you know that he is lying, and number two, you know that you are screwed. No politician can create a job, other than the domestic worker who he employes in his personal capacity. Only the market, entrepreneurs or capitalists with a profit objective can create jobs.

Now we are getting somewhere! When any socialist government uses its power to make laws, to expropriate the profits from the entrepreneur and then distribute those profits among the employees by means of labour laws and the protection of labour unions, the jobs simply vanish. The individual with the profit objective simply goes elsewhere.

Our government protects and enables the strongest and most militant labour unions in the world. Our unemployment figures are also the highest in the world. Our president took part in the destruction of the profit objective. Go figure.

I prefer responsible capitalism myself Sensei with less government intervention and red tape. I believe the role of government should be creating conditions for businesses to thrive. That is eliminate all the red tape, clarify policies, etc, the rest capitalists will find a way. After all one creates more job opportunities through SMEs. Thats why I am an SME.

And yes he is my President and I do not agree with everything he says or does

Just listened to a Bloomberg interview with Ramaphosa. President says it is Populism to take drastic measures like cutting government jobs or reducing salaries. When the journalist asks him what the solution is, the president’s answer is that the solutions will evolve from discussions with all the “partners”. This is ridiculous. Nothing is going to change in this country. Our president wants to keep everyone happy, doesn’t want to make difficult but necessary decisions. Moody’s, I ask you again, why the delay? Just downgrade to junk and get it over with.

Too much negativity in these comments. Let’s resolve to do something to improve our attractiveness to investors, foreign and local.

CR has a very fine balancing act to perform…and judging by the majority of negative commentts here he’s not doing it well. The bottom line is that he is just trying to stay alive. Consider how little would be done if we had ANY other person as head of this country. He is the best option of the moment so stop winging and get on with it. I’m not an ANC supporter by the way ……

We seem to have gone nowhere since the mid 2000’s – in those days they were going to create 600,000 new jobs p.a. which would soak up the unemployed. We have an education system that is focused on getting the learners through the system as quickly as possible – the outcomes are irrelevant. All economies are moving away from manual labour mechanisms to machines, robotics, and apps. which removes the need for labour. We have mercenary labour unions whose only objective in life is to stagnate the economy, demand wage increases for poorly skilled workers, and to boot when they march they destroy all before them.
Government and labour need to realize they are not evolving with the world economy and as such will have progressively more and more unemployment and they have no solution to these problems they would rather create racial disharmony. One final thought – government is consistently bailing out useless SoE’s, where are the funds going to come from – we already have a shrinking tax base due to policy decision which are devisive. Cyril the squirrel is running a Ponzi scheme right here in our midst

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