Ramaphosa’s $100B Investment Target will be Reached in a Year – BRICS Ambassador

Updated on 18 July 2018

Subscription Form (#66)
President Cyril Ramaphosa
President Cyril Ramaphosa Picture by Bheki Radebe

The target set by President Cyril Ramaphosa to garner $100 billion in local and foreign investment to boost the South African economy is “modest” and would be achieved within a year, Professor Anil Sooklal said on Tuesday.

“The $100 billion is a modest target. I believe we will reach that in a year,” said Sooklal, who is the South African sous-sherpa (ambassador) for the economic bloc of Brazil, Russia, India, China and South Africa, known as BRICS.

He is also the deputy director-general for Asia and the Middle East at the Department of International Relations and Cooperation (Dirco).

Sooklal was speaking at a BRICS roundtable discussion with captains of industry at the Richards Bay Industrial Development Zone on Tuesday afternoon.

The event was a precursor to the annual BRICS Business Council meeting taking place in Durban from July 22 to 23, hosted by South Africa.

Ramaphosa is looking to attract $100 billion in new investments over the next five years to boost the economy and create employment.

On April 16, he announced that Phumzile Langeni, Mcebisi Jonas, Trevor Manuel and Jacko Maree would form the Presidential Special Envoy for Investment, tasked with attracting investments.

Sooklal said that Ramaphosa was “the best salesperson” for South Africa.

On a state visit to Saudi Arabia and the United Arab Emirates (UAE) last week, Ramaphosa secured a $10 billion minimum investment from the Saudis and another $10 billion from the UAE.

“They have taken to the president. The way he marketed our country in these two countries, the Saudi King was enamoured with him. The Sheikh in the UAE asked him what he wanted them to do for South Africa, he was ready,” said Sooklal.

He said that Ramaphosa’s leadership style was conducive to attracting investment.

“He is paving the way for business people… The [Saudi] crown prince told president Ramaphosa that he loves South Africa… He told the president: ‘I love your country and we want to come and invest in your country,’” said Sooklal.

The Chinese were just as positive about the country when Sooklal interacted with them.

“The Chinese ambassador has said he wants to bring at least $30 billion during the investment summit, and I am sure this will materialise,” said Sooklal.

Chinese President Xi Jinping will be in South Africa on a state visit on the eve of the BRICS leadership summit. Sooklal said the “deals” that would be signed next week would be “very significant”.

There were 150 Indian companies operating in South Africa, he said, which provided opportunities for growth.

“The Indians are very keen to come and create a pharmaceutical hub here to tap into Africa…. To show how serious they are about Africa, they appointed a full time minister this year,” said Sooklal.

South Africa’s total trade with BRICS countries was about R450 billion, said Sooklal, with the bulk of this coming from China at R300 billion.

Trade with India accounted for R107 billion, with Brazil at R30 billion and Russia was under R10 billion.

There was a great appetite for investing in South Africa and refocusing on the country from other countries besides the BRICS bloc, said Sooklal.

“Japan is a major investor into the South African economy, the third after the [United States of America] USA and China. Japanese Prime Minister Shinzo Abe was one of the first to phone president Ramaphosa when he was made president. The Japanese want to scale up investment significantly into Africa,” said Sooklal. (via African News Agency)

Get Weekly 5-Minutes Business Advice

Subscribe to receive actionable business tips and resources.

Subscription Form (#66)

Feeling Stuck?