Tech companies pledge billions in South African investments

Google, Teraco, Telkom, and Dimension data have pledged a combined investment of R15.5 billion at the third annual South Africa Investment Conference.

The Investment Conference took place at the Sandton Convention Centre this week, where 50 companies have pledged combined investments of R109.6 billion.

The latest pledges bring the total amount of investment pledges to R773.6 billion worth of investments in the last three years.

With this total amount, South Africa has now reached 64% of its total investment target of R1.2 trillion.

President Cyril Ramaphosa said considering the subdued economic climate, securing investment commitments of over R100 billion is a remarkable achievement.

The investments are spread across various sectors in South Africa, including manufacturing, property, and telecoms.

A few of the noteworthy investment commitments include:

  • Equites and Sandvik – R287 million for expanding its facilities.
  • Metair – R1.1 billion in the automotive components manufacturing industry in KwaZulu-natal, the Eastern Cape, and Gauteng.
  • Dr Oetker – R200 million to expand the production of pizza and ready meals.
  • Frimax – R380 million for the expansion of snacks and potato chips.
  • Pepsico – R5.5billion to further expand manufacturing capacity across its Pioneer Food operations in the country.
  • PG Bison – R1.98 billion to expand their board manufacturing plant in Piet Retief and investing in a medium density fibre board plant in Boksburg.
  • Akani Properties – R1.2 billion for a number of property developments in the North West, Gauteng and Mpumalanga.
  • Sola – R400 million in the renewable sector across the country.
  • Sola Africa – R170 million in solar energy for large industrial consumers
  • New Development Bank – R32 billion towards the financing of projects in South Africa.
  • Old Mutual – R3.6 billion in funds towards infrastructure projects across South Africa.
  • Sanlam R7.25 billion towards funding for small and medium enterprises and infrastructure projects across South Africa.
  • Industrial Development Corporation – R8 billion towards funding projects in South Africa.
  • Belgian Chamber of Commerce with an investment of R1.5 billion.

Tech investments in South Africa

When looking at the technology and telecoms sectors, Google, Teraco, Telkom, and Dimension Data committed to large investments.

Teraco Data Environments committed R4.4 billion to build a new hyperscale data centre with 38MW of critical power load in Ekurhuleni, South Africa.

The new Teraco facility is called JB4 and will be the largest data centre in Africa once it is built.

NTT and Dimension Data pledged R875 million to expand their respective data centre infrastructure in Gauteng.

The new Dimension Data Johannesburg 1 Data Centre is designed according to tier 3 standards and will be constructed in two phases.

When fully built, it will deliver a total of 6,000 square meters of IT space and 12MW of IT load. The first phase of the site is scheduled to become operational at the beginning of 2022.

Google said it will spend R2.2 billion in a fibre optics submarine cable in the Western Cape that will provide high-speed internet connectivity across South Africa.

Telkom committed the most through its pledge to spend R8 billion to expand its infrastructure across the country.

Now read: Teraco is building the biggest data centre in Africa – Photos

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Tech companies pledge billions in South African investments