In a strong message to the international business community, Minister of Trade, Industry and Competition Parks Tau, declared the country “open for business” during the third Business Forum Southern Africa & Indian Ocean held yesterday.
Speaking via video link from Cape Town, Tau encouraged French businesses to seize the opportunity to invest in a nation characterised by stable governance and a resilient democracy.
“The ties between French companies and South Africa run deep, and we are aiming to strengthen those bonds with strong engagement with investors,” Tau stated, underlining the potential for further collaboration between the two nations.
“With approximately 500 French companies operating in South Africa, employing nearly 70 000 people and pledging an impressive R70 billion in investments since 2018, the groundwork for future partnerships seems promising.”
The minister emphasised the government’s commitment to promoting inclusive growth as a priority, highlighting a robust partnership with the private sector.
He reiterated the importance of the structural reform programme, Operation Vulindlela, which aims to accelerate the implementation of critical structural reforms.
“Investors are vigilantly monitoring the progress of these reforms to ascertain whether discussions lead to tangible actions,” he explained.
Energy supply, logistics, and combating crime and corruption were identified as areas where collaborative solutions are crucial.
“We aim to eliminate the constrictive barriers so investors can fully reap the benefits of their investments,” said Tau, highlighting South Africa’s competitive advantage due to its rich resource base of critical minerals such as platinum.
French Ambassador to South Africa, David Martinon, focused on the significant infrastructure investment opportunity that awaits French companies, urging for the development of 14 000 kilometres of transmission lines necessary for linking renewable energy projects to consumers.
This presents a unique chance for investment in South Africa, especially as the country strives to transition to greener energy sources.
Minister of Small Business Development, Stella Ndabeni-Abrahams, reflected on the formation of the government of national unity, crafted in response to May's electoral changes and the pursuit of unified growth.
“We are committed to building inclusive growth to create jobs, and I want to thank French companies for joining hands with us as we aspire to create 11 million jobs by 2030, of which 90% will stem from small businesses,” she expressed optimistically.
Dr Stavros Nicolaou from Aspen Pharmacare echoed positive sentiments regarding the government’s financial credibility, noting that the stronger rand since the election is a sign of the markets’ confidence.
However, Nicolaou raised concerns regarding the cost of electricity, emphasizing the dire need for diversification in the energy mix and a push towards green energy solutions.
Rudi Dicks from the Presidency noted the ambitious goal of finalising the Integrated Resource Plan (IRP) by year-end, a move anticipated to provide much-needed policy certainty to potential investors.
Bheki Nxumalo, group executive for generation at Eskom, reflected on a rich 40-year partnership with French companies, particularly at the Koeberg nuclear plant.
With newfound potential for the next two decades following the licence extension of Koeberg Unit One, he hinted at future explorations into small modular reactors for inland base load generation, pending government resource planning decisions.
BUSINESS REPORT