Investment Conference: Hundreds of billions of rands already pledged

[Visser]

https://www.fin24.com/Economy/inves...of-billions-of-rands-already-pledged-20181026

Several companies made major investment announcements during President Cyril Ramaphosa's Investment Conference, called to rally investors to plough money into the country’s ailing economy.

These include Sappi (R7.7bn), Mondi SA (R8bn), Rain (R1bn), Mara (R1.5bn), mining company Vedanta (R21.4bn), Ivanplats (R4.5bn), AngloAmerican (R71.5bn), Bushveld Minerals (R2.5bn), Naspers (R6bn) and Mercedes Benz SA (R10bn), among others.

Details of where and over what period of time these funds will be invested are still to be announced. Fin24 will update the list as more information becomes available.

The inaugural summit, which is being attended by local and foreign business leaders, is part of Ramaphosa’s drive to attract $100bn in investment into the country over the next five years.

In his opening address, Ramaphosa said there was a need for South African companies to "lead the investment charge” and , demonstrate that they have confidence in the SA economy and in "its ability to deliver decent and reliable returns".

"Today, a number of local and international companies will make announcements on investments to expand existing operations in the country or establish new ones," said Ramaphosa.

 

[Visser]

Ah well, there we go... Investment challenges overcame and economy saved. Hopefully we will not hear the ANC complaining about investments ever again!

 

[surface]

Ah well, there we go... Investment challenges overcame and economy saved. Hopefully we will not hear the ANC complaining about investments ever again!

but my friend, this is only 140 billion rands - this probably takes care of couple of ANC cadres - innit?

 

[Visser]

but my friend, this is only 140 billion rands - this probably takes care of couple of ANC cadres - innit?

Yes, true, but is this not what the investment drive was for? Taking care of a couple of cadres? I truly hope you did not think the ANC was serious about uplifting the country, right?

 

[thestaggy]

In his opening address, Ramaphosa said there was a need for South African companies to "lead the investment charge” and , demonstrate that they have confidence in the SA economy and in "its ability to deliver decent and reliable returns".

How about you also make SA more investor/business-friendly to encourage them?

 

[HBee]

All those pledges are probably conditional on economical conditions that cannot be met by goverment.

 

[Visser]

All those pledges are probably conditional on economical conditions that cannot be met by goverment.

100% correct. No company would invest billions if there are any risks.

 

[The Trutherizer]

Well these all sound like companies with a significant vested interest in the country. I think it is a positive thing that they could be convinced to invest locally rather than move elsewhere, or just sitting on their money as they have for years now due to a lack o regulatory confidence (which was of course understandable). It must mean that they've been met halfway at the very least. Our main economic challenge apart from improving investor confidence is creating jobs ergo tax payers. If we can even partly solve that then things will significantly improve. And it will improve investor confidence as well if they can prove that SA is a place where investment result in returns. So maybe a twofer.

I have a modicum of hope here. The government has taken a stronger stance against corruption than they have since I can remember reading the news. So things are looking better on several fronts. Better is good. I can wait for perfect.

 

[SaiyanZ]

News like like this should have sent shockwaves through the market. Except it doesn't seemed to have helped the Rand today. Rand has weakened even more.

 

[Visser]

News like like this should have sent shockwaves through the market. Except it doesn't seemed to have helped the Rand today. Rand has weakened even more.

The Rand weakened primarily on the news from Moody's that the Medium-term budget is credit-negative. Seems they may soon downgrade the country to junk.

 

[TheChamp]

Good news, well done to all involved.

 

[TheChamp]

All those pledges are probably conditional on economical conditions that cannot be met by goverment.

Sounds more like wishful thinking, unless you can tell us what those conditions are?

 

[Visser]

This whole thing was a farce - election propaganda. No local business, or specifically international investors, will invest under the current economical and political climate. This is just like the billions from Saudi Arabia, UAE and China that, for some reason, still have not emerged.

 

[TheChamp]

This whole thing was a farce - election propaganda. No local business, or specifically international investors, will invest under the current economical and political climate. This is just like the billions from Saudi Arabia, UAE and China that, for some reason, still have not emerged.

https://www.businesslive.co.za/bd/c...t-chinese-car-plant-baic--expected-to-resume/
https://www.fin24.com/Companies/Industrial/sappi-injects-r75bn-into-kzn-economy-20180726
https://www.timeslive.co.za/sunday-...-as-bmw-group-sa-starts-producing-the-new-x3/
https://www.iol.co.za/business-repo...nz-sa-in-r947bn-plant-expansion-plan-15711721

Truth is things have been happening all along while you were busy with your anti SA propaganda.

 

[Visser]

https://www.businesslive.co.za/bd/c...t-chinese-car-plant-baic--expected-to-resume/
https://www.fin24.com/Companies/Industrial/sappi-injects-r75bn-into-kzn-economy-20180726
https://www.timeslive.co.za/sunday-...-as-bmw-group-sa-starts-producing-the-new-x3/
https://www.iol.co.za/business-repo...nz-sa-in-r947bn-plant-expansion-plan-15711721

Truth is things have been happening all along while you were busy with your anti SA propaganda.

Yep, these are the type of 'investments' people are fooled with... let's start with BAIC... have they even started rolling off a vehicle after they were unable to pay salaries? Nice investors. Wonder if the staff was South Africans or Chinese.... Also wondering about locals being employed after a couple articles showed they were waiting to import massive robotic equipment to automate the work....

After the 2013 strikes that saw BMW closing down their plant in Pretoria, there were massive lay downs and some under-the-table dealings saw them reopening and continuing business. The plant haven't really grown or expanded operations since or really contributed towards unemployment - even though a new model has been started there.

As for SAPPI, they won't go anywhere, at least for now, but they have not recently invested in any land, as per Deeds Office documents. They probably are waiting to see what will come of EWC before pushing 'billions' into the country.

So, with the exception of Merc, so far, I keep wondering about the other examples you gave...

 

[TheChamp]

Yep, these are the type of 'investments' people are fooled with... let's start with BAIC... have they even started rolling off a vehicle after they were unable to pay salaries? Nice investors. Wonder if the staff was South Africans or Chinese....

After the 2013 strikes that saw BMW closing down their plant in Pretoria, there were massive lay downs and some under-the-table dealings saw them reopening and continuing business. The plant haven't really grown since or really contributed towards unemployment - even though a new model has been started there.

As for SAPPI, they won't go anywhere, at least for now, but they have not recently invested in any land, as per Deeds Office documents. They probably are waiting to see what will come of EWC before pushing 'billions' into the country.

So, with the exception of Merc, so far, I keep wondering about the other examples you gave...

Do you expect BAIC to invest today and produce a car tomorrow? Anyway, goalposts officially moved?

This whole thing was a farce - election propaganda. No local business, or specifically international investors, will invest under the current economical and political climate. This is just like the billions from Saudi Arabia, UAE and China that, for some reason, still have not emerged.

Your anti SA agenda is clear for all to see, no need to keep on pretending, be yourself man.

 

[ForceFate]

All those pledges are probably conditional on economical conditions that cannot be met by goverment.

I doubt they would've announced such investments if they had serious doubts about conditions.

 

[Sneeky]

I'm also pretty skeptical to be honest, seems the likes of Moody's are as well. At the moment its just hot air.
There were more promises noted today.
https://ewn.co.za/2018/10/26/cyril-ramaphosa-announces-r290bn-investment-to-sa

Industry in SA has suffered massively the last decade (even more) and honestly there are no concrete plans in place that will alter that position currently on the horizon.

Our population growth is strong and employment opportunities are shrinking along with an industrial complex which is in an undeniable horrific state of decline. Largely unskilled labor need big industry. Even our highly skilled folks with degrees are struggling and moving away.

So bucket loads of money promised, enough to fill my bakkie (just one load pls, I'm not greedy), how is this going to help or how are we going to make this work for us?
We need to put people to work?

I am standing on the virtual hill seeing the piggy's already gathering to begin running to the money trough, trampling over the less fortunate while the vultures are circling above ready to pick up the scraps.
Nothing, absolutely nothing that has happened over the last number of years, with all the dirt exposed, gives me any confidence anything will be any different this time around.

Again, start throwing people in jail then maybe sentiment will change.

 

[Visser]

Do you expect BAIC to invest today and produce a car tomorrow? Anyway, goalposts officially moved?

Your anti SA agenda is clear for all to see, no need to keep on pretending, be yourself man.

Did you know that BAIC promised 95bn in investments here in SA? Did you know the IDC owns 35% of BAIC? How much money did they pay for this share? While I am convinced BAIC is still only using the ANC governments' money, I highly doubt they spent a single cent of their own money.

 

[ForceFate]

Did you know that BAIC promised 95bn in investments here in SA? Did you know the IDC owns 35% of BAIC? How much money did they pay for this share? While I am convinced BAIC is still only using the ANC governments' money, I highly doubt they spent a single cent of their own money.

Thought it's R11bn. R95bn is total money pledged by Chinese companies afaik. There's no way a car assembler would've invested R95bn in SA in one go.