South African president Cyril Ramaphosa said his administration is on track to lure $100 billion in new investment within five years, with more than $16 billion already committed and many more projects in the pipeline.<\/p>\n
With the economy stagnating, an unemployment rate approaching 30% and the country in danger of losing its sole investment-grade credit rating as the state\u2019s finances deteriorate, Ramaphosa needs an injection of new capital to shore up economic growth.<\/p>\n
His campaign got off to a good start in October last year when an international investment conference secured pledges that helped push inflows to a five-year high.<\/p>\n
Of the 31 projects that were announced, eight have been completed and 17 are under construction or at the implementation stage, Ramaphosa said at the opening of a follow-up investment summit in Johannesburg on Wednesday.<\/p>\n
\u201cWe are clear about what we need to do, and we are marshaling our every resource and our every capability to do it,\u201d he told delegates. \u201cWe are on a path of removing impediments and constraints to inclusive growth.\u201d<\/p>\n
The government is making progress in meeting promises to remove hurdles to investment, provide greater policy certainty and ease visa rules, according to the president.<\/p>\n
Despite the uptick in investor interest, the National Treasury projects Africa\u2019s most-industrialized economy will expand an average of just 1.5% over the next three years as electricity shortages constrain output. Lower-than-expected growth has curbed tax revenue, causing debt and deficit levels to soar, and Moody\u2019s Investors Service has warned it may downgrade its assessment of the nation\u2019s debt to junk unless urgent action is taken to turn the situation around.<\/p>\n
The government is committed to taking the necessary measures to stabilize its ratio of debt to gross domestic product, and restructure and modernize struggling state power utility Eskom Holdings SOC Ltd, Ramaphosa said.<\/p>\n
\u201cAn immediate priority is appointing a CEO and strengthening governance through revamping the board, which we will do in the next few days,\u201d he said.<\/p>\n
The Congress of South African Trade Unions, the country\u2019s largest labor group and an ally of the ruling party, said while efforts to attract new investment were laudable, the government and business had been \u201cvery lethargic\u201d in implementing decisions taken at previous summits.<\/p>\n
\u201cCosatu hopes that the government and industry will not forget its purpose, namely, to grow the economy and ensure all workers have decent permanent jobs,\u201d the federation said. \u201cWhilst we welcome investments, workers will not accept slave wages and the eradication of their rights.\u201d<\/p>\n