President Cyril Ramaphosa recently addressed suggestions that South Africa's investment conferences are "just for show," defending their role in driving job creation and economic growth. The SA Investment Conferences, which began in 2018, have attracted R1.5 trillion in pledges, with R634 billion already invested into infrastructure such as factories, mines, data centers, and power plants, leading to job creation. "Our GFCF reached around 21% in 2008... There has been a steady decline since then, as the global financial crisis and the period of state capture progressively undermined private investment and business confidence," he stated. "Since 2018, we have sought to arrest this decline. We have matched intent with action," Mr. Ramaphosa added, noting efforts to stabilize public finances and advance structural reforms. "Through this, we aim to narrow the gap between investment pledges, implementation and eventually job creation," he explained, emphasizing the goal to encourage substantial private capital for productive domestic investment. In a related initiative, Microsoft partnered with the Youth Employment Service to offer globally recognized certification in high-demand Artificial Intelligence skills.
Pledges Translate to Real Investment
An Infrastructure Investment Summit convened by BlackRock was held last week, further noting South Africa's focus on attracting capital. The investment conferences have drawn funding into diverse sectors, including energy, telecommunications, infrastructure, automotive manufacturing, and advanced manufacturing, according to President Ramaphosa. Mr. Ramaphosa stated that these engagements are not "just for show," but rather "an opportunity to connect investors with local opportunities, and bring together governments, business, banks and development finance institutions." He added, "Around the world, investment conferences and summits are platforms to attract foreign direct investment in a global investor landscape that has become increasingly competitive."
President Ramaphosa cited several examples of investments that have materialized, including a R4.2 billion commitment by BMW to electrify its Rosslyn plant in Gauteng for new energy vehicle production. Tetra Pak also invested R500 million to upgrade its plant in KwaZulu-Natal, alongside Corobrik's R500 million investment for its Kwastina plant in Gauteng. The Newlyn PX terminal in the Port of Durban commenced operations in 2024. Last year, President Ramaphosa officially opened the Ivanplats Platreef mine in Mokopane, an initiative that originated from a R2.8 billion investment conference pledge.
Microsoft is also expanding its cloud and AI infrastructure in South Africa with an investment exceeding R5.4 billion by 2027. Mr. Ramaphosa noted that "Microsoft has partnered with the Youth Employment Service to offer globally recognised certification in high-demand Artificial Intelligence (AI) skills," as part of this broader investment. He affirmed, "It is now abundantly clear that the engagements and commitments made in conference halls are steadily and increasingly translating into the economic activity that creates jobs and opportunities for South Africans."
Economic Context and Goals
Investment conferences and summits serve as platforms to attract foreign direct investment in a global investor landscape that has become increasingly competitive, according to President Cyril Ramaphosa. These investments are also supporting skills development initiatives aimed at better equipping young South Africans for the evolving world of work. South Africa's Gross Fixed Capital Formation (GFCF) currently stands at approximately 14% of the nation's Gross Domestic Product (GDP). The National Development Plan (NDP) has set a target for GFCF to reach 30% by 2030.
Mr. Ramaphosa noted that GFCF reached around 21% in 2008, driven by a sustained commodity boom, the commencement of Eskom’s build programme, and infrastructure expansion ahead of the 2010 FIFA World Cup. "There has been a steady decline since then, as the global financial crisis and the period of state capture progressively undermined private investment and business confidence," he stated. He added, "Since 2018, we have sought to arrest this decline. We have matched intent with action, moving to stabilise public finances, resolve the energy crisis and advance structural reforms." Additionally, South Africa’s non-financial companies held R1.8 trillion in reserves by July 2025, according to the South African Reserve Bank. "We aim to encourage the substantial private capital that is in reserve to be used for productive domestic investment," Mr. Ramaphosa said.
Government's Push for Investment
Since the beginning of the year, the South African government has hosted various business forums in several countries, alongside the annual SA Investment Conference and provincial investment conferences. These efforts aim to stimulate economic activity and attract capital. A significant portion of the commitments made at the sixth South Africa Investment Conference originated from domestic investors.
Corobrik, for example, invested R500 million to construct its Kwastina plant in Gauteng. President Cyril Ramaphosa noted that South Africa's Gross Fixed Capital Formation (GFCF) reached approximately 21% in 2008, a period driven by a sustained commodity boom, the initiation of Eskom’s build programme, and infrastructure expansion in anticipation of the 2010 FIFA World Cup. "There has been a steady decline since then, as the global financial crisis and the period of state capture progressively undermined private investment and business confidence," Mr. Ramaphosa stated.
He added, "Since 2018, we have sought to arrest this decline. We have matched intent with action, moving to stabilise public finances, resolve the energy crisis and advance structural reforms." Through these measures, the government aims to bridge the gap between investment pledges, their implementation, and job creation. Mr. Ramaphosa further indicated a goal to encourage the substantial private capital held in reserve by non-financial companies, which amounted to R1.8 trillion by July 2025, to be directed towards productive domestic investment.
