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<\/a>Fixed investment growth came predominantly from investments into the construction of non-residential buildings, and infrastructure investment in computer software, research and development, cultivated biological resources and mineral exploration<\/p>\n\n\n\n
Bishop outlined that private sector growth in infrastructure investment accelerated by 4.9% y\/y in 2023, after the 5.2% y\/y increase seen in 2022.<\/p>\n\n\n\n
This is opposed to Reserve Bank, which data shows that South Africa\u2019s SOEs, in contrast, reduced their expenditure on fixed investment by 1.7% y\/y in 2023.<\/p>\n\n\n\n
“SOE spend on infrastructure continues to fall, [which limits] economic growth,” said Bishop.<\/p>\n\n\n
“Fixed investment remains key to economic growth outcomes,” as it provides many of the structural and productive factors necessary for growth, said Bishop.<\/p>\n\n\n\n
Government’s new ‘multistakeholder’ approach to investment<\/strong><\/p>\n\n\n\n The Department of Trade, Industry and Competition (DTIC) said that over the past several years, it has changed its approach to “a multistakeholder approach to industry-level initiatives, in which government, the private sector and labour collectively developed and implemented plans.”<\/p>\n\n\n\n This contrast “with the earlier approach of state-led measures developed through comparatively informal consultations,” said the department.<\/p>\n\n\n\n At the start of his tenure as minister of the DTIC, Ebrahim Patel said<\/a> that “the role of industrial policy is to unleash private investment and energise the state to boost economic growth and inclusion [as] this is an essential part of building investor confidence and the platform for job-creation.”<\/p>\n\n\n\n President Cyril Ramaphosa echoed this, recently saying<\/a> that \u201c(i)t is only through attracting higher levels of investment, both foreign and domestic, that a swift, sustainable economic recovery can be assured.\u201d<\/p>\n\n\n\n Moving towards a multistakeholder approach, as opposed to the previous state-led approach has seen that between 2019 and 2023, foreign direct investment (FDI) inflows into South Africa rose to R1.1 trillion.<\/p>\n\n\n\n This is an increase from the R312 billion recorded during the previous five years, a period largely under the presidency of Jacob Zuma, which the DTIC says was as a result of muddied relationships with the private sector and government during the height of state capture.<\/p>\n\n\n Investment<\/strong> growth<\/strong><\/p>\n\n\n\n At the beginning of May, the DTIC published its Industrial Policy & Strategy Review<\/a>, which outlined that the South Africa Investment Conference (SAIC) surpassed the initial R1.2 trillion target to reach R1.51 trillion in investment pledges.<\/p>\n\n\n<\/a><\/figure><\/div>\n\n\n