Ramaphosa delivers GNU sales pitch to the world

President Cyril Ramaphosa is leading a government delegation to the United States, using the trip to introduce the Government of National Unity (GNU) to world leaders.

He is also using the opportunity to sell South Africa’s renewed focus on economic recovery and structural reforms that are facilitating renewed crucial investment in the country.

Speaking to the United Nations (UN) General Assembly on 24 September for the first time since the formation of the GNU, Ramaphosa looked to convey a message of renewed optimism in South Africa.

“Today, democracy flourishes in South Africa… We have just held our seventh free and fair general elections since our democracy, paving the way for the formation of a Government of National Unity,” said Ramaphosa.

“Ten political parties have coalesced around a common agenda for economic growth, job creation, poverty eradication and sustainable development.”

“South Africa is in a new era, an era of great promise,” added the President.

Ramaphosa told world leaders that the GNU was making “headway in resolving” some of South Africa’s most pressing challenges, which hampered cause for investment, such as inconsistent electricity supply.

“Our economy has started to improve, and investor confidence is on the rise. Our country’s prospects look bright.”

The formation of the “business-friendly” GNU (a definition given by some economists for the inclusion of parties with more ‘free-market’ policies) has ignited a wave of investment and positive sentiment about South Africa, signalling a reversal of years of economic stagnation.

After the coalition agreement in July, several businesses either invested further in South Africa or reversed plans to withdraw their investments.

It was this exact message that Ramaphosa and the South African delegation sought to get across during the trip.

At the SA-US Interactive Business Forum in New York, Ramaphosa urged US businesses to enhance their investment ties with South Africa, emphasising the country’s economic recovery, structural reforms and the ‘progress made’ by the GNU thus far.

In 2022, bilateral trade between the US and South Africa hit $17.6 billion in 2022 – something that the country is looking to increase.

“The advent of the Government of National Unity has renewed investor optimism in the South African economy. The message I bring to US investors today is that this optimism is well-placed,” said Ramaphosa on 23 September.

“South Africa is firmly on the road to recovery, and we invite you to be part of this journey. Investments in South Africa are secure. Our business environment is stable. This is supported by policy certainty and regulatory safeguards,” he added.

He announced the achievement of a R1.2 trillion investment target in South Africa ahead of schedule and set a new goal of R2 trillion by 2028.

Ramaphosa also noted the growing collaboration between the New York Stock Exchange and Johannesburg Stock Exchange.

Selling South Africa as an attractive investment destination during his US trip did seem to bear some fruit, with the rand rallying to a 19-month high against the US dollar on Wednesday (25 September).

Among the numerous business leaders, Ramaphosa met with Tesla, SpaceX and X boss, and South African-born Elon Musk.

In a post on X, the South African government said: “In New York: President Cyril Ramaphosa meeting with Elon Musk (owner of this very platform X) talking investment in South Africa during the United Nations General Assembly.”

According to an SABC News report, the meeting was long in the making and held behind closed doors. Ramaphosa described the meeting with Musk as positive, adding that further discussions will likely occur.

Musk described it as a “great meeting.”

News of the meeting comes after Ramaphosa revealed earlier this month that the South African government was in talks with Musk’s SpaceX regarding its satellite communication service Starlink.

“I have had discussions with him and have said, Elon, you become so successful and you’re investing in a variety of countries, I want you to come home and invest here,” said Ramaphosa.

“He and I are going to have a further discussion.”

The president explained that Starlink had approached the South African government.

Musk recently told a South African on Twitter/X that Starlink is waiting for regulatory approval to launch in the country.

Read: Where investors are putting their money in South Africa