Special economic zones are signified by their potential to encourage national economic growth, export goods and attract both foreign and domestic investments and technology. Picture: Supplied
Investors say the R363 billion in pledges made at the South African Investment Conference this week was essential in making the country economically viable and progressive and, most importantly, to sustain life.
Intercontinental partnership Brics’ (Brazil, Russia, India, China and South Africa) New Development Bank (NDB) invested R23 billion for projects aimed at rescuing the troubled energy and water sectors, as well as the development of transport infrastructure in 2020.
NDB director Monale Ratsoma said: “We are not a commercial bank but a developmental one, and [that is] one of the reasons we decided to invest [in] entities that would contribute to the growth of the economy and for the betterment of people’s lives.”
He said projects would include looking into using the clean generation of coal energy, aimed at minimising climate impact, reducing emissions and to lessen the catastrophe caused by all mining.
It also plans on investing in the Lesotho Highlands Water Project and infrastructure facilitating the distribution of water.
Ratsoma added that investment into the transport sector was meant to ensure the free flow of economic production, ensuring fiscal growth.
SA automotive body parts blanking company VM Automotive pledged to invest R426 million in 2019 and 2020.
Chief executive Gibson Njenje said the company was currently building a plant in Berlin in the Eastern Cape, aimed at employment acceleration.
Njenje said the plant would ensure the company was able to meet the demand of well-established vehicle manufacturing companies. Its major client, MercedesBenz, was releasing a new car next year with an estimated seven-year life span.
“The company’s objective is to develop the local economy and specifically the rural economy.
“There is hardly any local manufacturing company supplying car parts to international companies.
“We are trying to change this narrative, but most importantly the investment ensures employment opportunities to impoverished youth,” he said.
MTN Group invested R50 billion into rolling out digital infrastructure, networks, connectivity, and high-speed highways that they believe SA will need to move further into the digital age.
“We are absolute believers that SA is going to rise in the years ahead. To this end we wish to contribute to the growth and development of the country, especially with respect to enabling digital and financial inclusion efforts across the country, as we believe everyone deserves the benefits of a modern connected life.”
Over the next five years MTN will spend R10 million per year of the R50 million pledged on the capital investment.
President Cyril Ramaphosa’s first investment conference, held in 2018, yielded about R238 billion worth of investment, committed to a number of projects.
– sinesiphos@citizen.co.za
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