Category: South Africa Government

Trade, Industry and Competition Minister Parks Tau has reaffirmed South Africa’s position as a competitive global investment destination, declaring that the country has “turned a corner” despite a volatile global economic environment.

Addressing the closing session of the Sixth South Africa Investment Conference in Sandton on Tuesday, Tau told delegates that the country remains open for business, underpinned by policy certainty and a stable regulatory framework. 

Quoting President Cyril Ramaphosa, Tau said investments in South Africa are secure and supported by safeguards that ensure long-term stability for investors.

The Minister acknowledged mounting global economic uncertainty, including rising protectionism and disruptions to multilateral trade systems, but said South Africa had responded with resilience rather than retreat.

“We have learned that complexity is not a reason for paralysis, but rather it is a prompt for action. When the status quo was upended in April 2025, many predicted a reckoning. The prognosis was steep. Tens of thousands of jobs in citrus, wine, and vehicle manufacturing in South Africa were said to be at risk. 

“Economists estimated the tariff shock could shave off measurable points of growth. It was, in the parlance of the moment, a crisis. What happened instead? South Africa did not reach Armageddon, and instead, we demonstrated resilience,” Tau explained.

Trade strategy shifts amid global headwinds

Minister Tau highlighted the country’s “Butterfly Strategy”, which has seen South Africa pivot its trade focus toward high-growth markets across Africa, Asia, the Middle East, and Latin America.

Key interventions included the establishment of an Export Support Desk to assist affected exporters and accelerated trade negotiations with major economies such as China and Thailand.

READ | SA rises to meet investment opportunities

He pointed to the recently signed China-Africa Economic Partnership Agreement, which will grant South African exports duty-free access to a multi-trillion-rand consumer market from 1 May 2026.

South Africa has also strengthened ties with the European Union through the Clean Trade and Investment Partnership, described by Tau as a first-of-its-kind agreement positioning the country as a gateway to the continent.

In Africa, progress under the African Continental Free Trade Area is gaining momentum, with Tau noting increased export activity across several countries, including the Democratic Republic of Congo, Egypt, and Ethiopia.

Investment commitments translating into projects

Reflecting on the impact of the investment conference since its launch in 2018, the Minister said government has made significant strides in converting pledges into tangible economic activity.

More than 300 projects have been initiated, with 161 either completed or under construction. Over R600 billion in investment commitments have already been injected into the economy.

He cited flagship projects such as the Platreef Mine in Limpopo and BMW’s investment in electrifying its Rosslyn plant in Tshwane as evidence of progress in industrial development and job creation.

The Minister emphasised that all investment announcements to be made at this year’s conference are backed by confirmed funding and board-level approval, signalling increased credibility of the platform.

Diversification, decarbonisation and digitalisation

Looking ahead, Tau outlined three strategic pillars for South Africa’s next phase of growth: diversification, decarbonisation, and digitalisation.

He said these pillars are central to the country’s industrial policy and will guide efforts to modernise the economy and attract sustainable investment.

“This new investment cycle is the platform on which we declare our ambitions for the next phase of this work. Where we are going is organised around three interlocking pillars: Diversification, Decarbonisation, and Digitalisation – the organising principles of our industrial policy, each backed by concrete implementation.” 

Tackling structural constraints
Despite the progress, Tau acknowledged persistent challenges, particularly regulatory delays that hinder investment.

To address these, government has established a Fusion Centre to fast-track project approvals and resolve bottlenecks in real time.

He also announced plans for an Omnibus Fast-tracking Act aimed at streamlining licensing processes, digitising permits and enabling faster visa approvals for scarce skills.

The Minister urged global investors to partner with South Africa, emphasising that the country’s track record speaks for itself.

“We are not asking you to take a leap of faith. We are inviting you to follow the evidence. Come and invest with us. Come and partner with us. And together, let us prosper,” the Minister said. – SAnews.gov.za

South Africa’s long-standing economic partnership with Europe continues to play a pivotal role in driving trade, investment, and infrastructure development, with leaders highlighting the need to sustain momentum and deepen collaboration to unlock growth.

This emerged during a high-level panel on Economic Diplomacy and Regional Cooperation at the Sixth South Africa Investment Conference on Tuesday.

European Union (EU) Ambassador to South Africa Sandra Kramer underscored the scale of the relationship, describing Europe as South Africa’s largest trading and investment partner.

“About 23% of trade in goods is between South Africa and the EU, while around 43% of foreign direct investment comes from Europe,” Kramer said.

She added that approximately 1 700 European companies operate in South Africa, supporting over 500 000 direct jobs and an estimated 1.6 million indirect jobs.

Kramer pointed to the Southern African Development Community–European Union Economic Partnership Agreement as a cornerstone of the relationship, noting that it allows 98% of South African goods to enter the EU market duty-free. 

“That gives South Africa access to a market of 450 million people,” she said.

French Ambassador David Martinon highlighted the depth of bilateral ties, revealing that French companies have invested around €66 billion in South Africa since 2019 across sectors including energy, manufacturing, tourism, and agriculture.

“These investments span the entire economy, from industrial projects to agri-processing and tourism developments,” Martinon said, adding that French firms continue to expand their footprint in the country. 

From a development finance perspective, Boitumelo Mosako said European funding has played a catalytic role in enabling large-scale infrastructure and development projects.

“European partners don’t just provide funding, they create multiplier effects that unlock further investment,” Mosako, who is the CEO of the Development Bank of Southern Africa, said.

She cited a €200 million green bond backed by the French Development Bank and significant funding from institutions such as the European Investment Bank as examples of how concessional finance has helped scale infrastructure projects in energy, transport, and water.

Mosako added that partnerships with European institutions have also strengthened project preparation and implementation capacity across the region, including cross-border infrastructure initiatives.

Kramer said recent initiatives such as the EU’s €12 billion Global Gateway investment package and the Clean Trade and Investment Partnership are expected to further accelerate investment in green industrialisation, digital infrastructure, and vaccine production.

“We have seen over 200 new European companies entering South Africa in recent years, which signals strong confidence in the country’s investment case,” she said.

Panellists agreed that Europe remains a reliable long-term partner in South Africa’s development agenda, particularly in advancing infrastructure, supporting industrialisation, and driving the transition to a green economy.

They emphasised the importance of maintaining the momentum built through recent engagements, including South Africa’s G20 Presidency, to translate commitments into tangible projects that boost economic growth and regional integration.

The session was moderated by Trudi Makhaya from the Boston Consulting Group. 
– SAnews.gov.za

South Africa’s skills pipeline should be seen as a growing investment asset, Deputy Minister in the Presidency Nonceba Mhlauli said on Tuesday.

Speaking during a plenary session on Skills for the Digital and Green Economy at the Sixth South Africa Investment Conference, Mhlauli said the country’s so-called skills gap is less about capability and more about connection.

“South Africa does not have a skills shortage problem. It has a connection problem,” she said. 

Mhlauli’s remarks echoed President Cyril Ramaphosa’s earlier sentiments. The President stressed that skills development, particularly among young people, is central to economic growth and transformation.

“The skilling of our people, especially young people, is critically important as we embark on a skills revolution,” President Ramaphosa told delegates.

Mhlauli said the “skills revolution” is already underway, pointing to the progress made through the Presidential Youth Employment Intervention, which has supported more than 1.7 million young people.

She said hundreds of thousands of young people have already been placed into earning opportunities, with a growing number entering the digital economy.

“What we are seeing through our work in the digital economy is striking… young people can move from learning to earning in a matter of months. They are coming from every part of the country, not just traditional talent hubs, and when given access, they perform, and they stay,” the Deputy Minister said.

She argued that investment in skills development is no longer just a social imperative, but a key driver of economic transformation, particularly as South Africa positions itself for a digital and green economy.

“If we are serious about a digital and green economy, then funding youth skills development is not just a social good. It is a transformation imperative. The real constraint is how quickly we can connect that talent at scale to real demand.”

She further highlighted the importance of strengthening dual systems of education and training, combining formal learning with practical workplace experience to build a sustainable skills pipeline.

According to Mhlauli, the main constraint is not the availability of talent, but the speed at which it can be connected to real economic demand.

“The real constraint is how quickly we can connect that talent at scale to real demand,” she said.

She urged investors, employers and training providers to rethink how they view the country’s workforce potential.

“We need to stop asking whether South Africa has the skills for the digital and green economy, and start asking how we unlock and connect the skills we already have,” she said.

Mhlauli concluded by challenging stakeholders to consider whether the country’s skills pipeline is being fully recognised as an investment opportunity.

“If we get that right, this is not just a workforce story – it is a growth story, and ultimately, an investment story,” Mhlauli said. – SAnews.gov.za

President Cyril Ramaphosa has intensified efforts to attract strategic investment into South Africa’s key growth sectors, holding a series of high-level bilateral meetings with global and local industry leaders on the sidelines of the Sixth South Africa Investment Conference (SAIC) in Sandton, Johannesburg. 

The engagements, held at the Sandton Convention Centre on Tuesday, focused on unlocking investment in agriculture, automotive manufacturing, digital technology and the creative industries, sectors identified as critical to driving inclusive economic growth and job creation.

During a meeting with Chairman and Group CEO of UPL Limited, Jai Shroff, discussions centred on expanding agro-processing capacity, strengthening agricultural inputs and supporting climate-smart farming.

The partnership aims to position South Africa as a regional hub for agricultural inputs and agro-processing, while supporting emerging farmers and boosting food security through innovation.

President Ramaphosa also met with Anant Singh of Videovision Entertainment to explore opportunities in the creative economy. Talks focused on investment in film studios and infrastructure, enhancing film incentives and promoting South Africa as a leading global filming destination.

The collaboration is expected to support skills development, tourism and international co-productions, further strengthening the country’s film and television sector.

In the automotive space, the President engaged Andrew Kirby of Toyota South Africa Motors on advancing investments in green mobility.

Discussions included hybrid electric and hydrogen fuel cell technologies, local battery assembly and supplier development, with a shared goal of positioning South Africa as a regional leader in sustainable automotive manufacturing.

A separate meeting with Charlie Zhang of Chery Auto reinforced this ambition, with both parties committing to expand collaboration in vehicle assembly, exports and green mobility solutions to drive industrial growth and job creation.

The President also prioritised the digital economy, meeting with Kojo Boakye of Meta Platforms to discuss expanding digital infrastructure, supporting small businesses and scaling digital skills programmes.

The partnership aims to enhance digital inclusion and position South Africa as a leading innovation hub on the continent.

In a similar vein, President Ramaphosa held talks with Kabelo Makwane of Google, focusing on investments in cloud infrastructure, data centres and artificial intelligence.

The collaboration is expected to accelerate SME development and strengthen the country’s digital capabilities, supporting entrepreneurship and long-term economic growth.

Collectively, the bilateral engagements signal government’s push to diversify investment across sectors while aligning with its broader agenda of industrialisation, digital transformation and sustainable development. – SAnews.gov.za

Agriculture Minister John Steenhuisen has called for urgent reforms to unlock investment in South Africa’s agricultural sector, warning that persistent constraints, including weak infrastructure, biosecurity failures, and policy uncertainty, are limiting the industry’s full growth potential. 

The Minister was speaking during an Investment Opportunity Commission on Agritech and Food System Innovation moderated by the Presidential Envoy on Agriculture and Land, Wandile Sihlobo, on the sidelines of the South Africa Investment Conference (SAIC) on Tuesday. 

Steenhuisen said the sector has shown strong recent performance but it requires targeted interventions to sustain momentum and drive job creation. 

“The last four quarters have shown very clearly the growth potential of agriculture and agro-processing,” Steenhuisen said, citing a 17% contribution to Gross Domestic Product (GDP) and a 10% year-on-year increase in exports. 

He highlighted high-performing subsectors such as the citrus, deciduous fruits, and nuts, but warned that logistical inefficiencies, particularly at ports, are constraining further expansion.

“These sectors could grow by up to 5% in the medium term if ports and rail systems are able to move products efficiently to markets.”

Steenhuisen also raised concern about deteriorating biosecurity, which has led to disease outbreaks such as Foot-and-Mouth Disease, restricting access to international markets for livestock producers.

“We are seeing the opposite trend in livestock, where markets are shrinking due to biosecurity challenges. We need to rebuild that ecosystem urgently.”

A key opportunity lies in agro-processing, which the Minister said remains underdeveloped despite its potential to significantly boost value addition and exports.

South Africa was exporting raw products when it could be adding value locally. “That is where the real opportunity lies,” he said. 

Misunderstood

Adding an investment perspective, Director at PIC, Thabi Nkosi, said the sector remains misunderstood by investors, particularly in its diversity beyond primary agriculture.

“We still have a lot of work to do in positioning agriculture as a resilient and innovative sector,” Nkosi said, pointing to opportunities in climate-smart technologies and water innovation.

She identified policy uncertainty, infrastructure challenges, and regulatory barriers as major deterrents to investment.

“Investors need clarity on issues such as biofuels policy, land reform, and water rights. Without that certainty, capital will hesitate,” she said.

Building resilience

Global agribusiness leader Jai Shroff emphasised the need to build farmer resilience in the face of climate change, describing it as one of the most pressing challenges facing the sector.

“A resilient farmer can invest in better technologies, and climate change is a huge challenge for the sector. Today, we are really looking at different ways to be able to drive this transition, where we can really make farmers more resilient. 

“We are competing with countries around the world which have a lot of money and can throw money at agriculture when they have challenges, but in developing countries like India, Africa, etc., it’s a lot more difficult,” Shroff said. 

Shroff added that sustainable practices such as carbon sequestration and biofuel production could unlock new income streams.

He argued that farmers should be incentivised for environmentally sustainable practices, which could be monetised and contribute to global decarbonisation efforts.

Steenhuisen said expanding export markets remains central to the sector’s growth strategy, particularly in Asia and the Middle East, where demand for South African agricultural products is rising. 

“We have been staggered by the demand in markets like East and Southeast Asia,” the Minister said, noting progress in gaining access for products such as grapes, apples, and cherries.

READ | South Africa’s first table grapes shipment arrives in the Philippines

He added that export growth has a direct impact on employment, with increased revenues enabling farmers to expand operations and hire more workers.

The panel agreed that unlocking investment in agriculture will require a coordinated effort to address structural constraints, improve policy certainty, and scale up agro-processing, positioning the sector as a key driver of economic growth and job creation. – SAnews.gov.za

Government’s push to build tourism infrastructure has begun to yield results, with eight investment-ready projects worth more than R1 billion now unveiled.

About 18 months ago, government called on provinces and cities to submit proposals aimed not only at attracting visitors, but at building long-term infrastructure to sustain the tourism sector. The response, officials say, was overwhelming.

Following a rigorous evaluation process, eight projects have been identified as fully structured and bankable.

Speaking at the Investment Opportunity Commission on Infrastructure, Tourism and Hospitality during the South Africa Investment Conference on Tuesday, Tourism Minister Patricia de Lille said the projects mark a shift in how tourism is being positioned.

“For the first time at this Investment Conference, tourism infrastructure investment projects are being presented not as ideas, but as opportunities,” de Lille said.

She said the initiative is aimed at diversifying South Africa’s tourism offering, introducing new products, and maintaining existing infrastructure.

“We have to diversify our tourism offering to the rest of the world, bring in new products, but also look at maintenance of our existing tourism infrastructure,” she said.

De Lille emphasised that tourism is one of the most employment-intensive sectors, making infrastructure development critical to job creation and economic growth.

She added that investor confidence depends on how projects are structured.

“Investors ask the same questions: is there a credible pipeline? Is the regulatory pathway clear? Are risks allocated appropriately, and are revenue streams predictable? These are the central considerations,” she said.

To improve the investment process, the department has established an investment facilitation unit to streamline engagement and reduce bureaucratic delays.

John Lamola, Group Chief Executive Officer of South African Airways, highlighted the critical role of air connectivity in tourism growth.

He said air travel, often driven by tourism, plays a broader role in fostering global understanding.

“When people travel, they don’t just move across borders — they move across understanding,” Lamola said.

He stressed that without adequate air access, even the strongest tourism offerings would struggle to succeed.

“If we cannot bring people here, then even the best tourism product cannot succeed,” he said.

Brand South Africa CEO Neville Matjie underscored tourism’s importance to economic development, noting that investment in the sector helps bridge social and cultural divides.

Panelists agreed that tourism should be approached as an infrastructure and competitiveness issue rather than purely a destination-driven sector.

They emphasised the need for projects to be structured with clear revenue models, defined risks and long-term viability to attract investment.

“Tourism must be understood not just as a destination story, but as an infrastructure and competitiveness story. That’s where the real competitive advantage lies,” one panelist noted.

“Investors don’t invest in stories — they invest in certainty.” – SAnews.gov.za
 

Finance Minister Enoch Godongwana says government’s decision to introduce a temporary R3 per litre fuel levy reduction is aimed at cushioning South Africans from what he describes as a significant economic shock driven by global oil price pressures. 

The R3 per litre reduction in the fuel levy announced today, is aimed at lessening the impact of severe fuel price hikes, that come into effect tomorrow. 

Speaking to the media on the sidelines of the South Africa Investment Conference (SAIC) on Tuesday, Godongwana said government had been closely monitoring rising tensions in the Middle East and their impact on global oil markets, which threatened to trigger steep fuel price hikes locally.

“We are aware that developments in the Middle East and their impact on oil prices are likely to affect our economy. We discussed different models and had to arrive at one that is affordable within the current fiscal environment,” the Minister said. 

Government ultimately settled on a R3 per litre relief for petrol and diesel adjustment through a temporary reduction in the general fuel levy.

The intervention comes into effect from 1 April and will run for one month, significantly softening the expected fuel price increase, which was projected to exceed R5 per litre for petrol and climb even higher for diesel.

This as the price of  all grades of petrol are set to rise by R3.06 a litre on Wednesday. The price of diesel will also rise by between R7.37 per litre and R7.51 per litre. 

READ | Petrol, diesel prices announced

While motorists will still feel the increase, Godongwana said the relief ensures the impact is less severe.

“This is still for April. We are going to assess what to do in May and June,” he said, noting that the current intervention alone will cost the country around R6 billion in foregone revenue.

The Minister acknowledged that diesel prices remain a major concern due to their broader impact on the economy.

“The diesel sector powers the economy, and changes in diesel prices affect everything – food, fertiliser and transport costs,” he said.

To address this, the Minister said an interdepartmental team is exploring additional interventions beyond fiscal measures to mitigate knock-on effects across key sectors. 

Despite the relief, Godongwana cautioned that government’s ability to sustain such measures is limited.

“This is a shock to the economy and a blow. Government can mitigate the effects for a specific period, but we cannot sustain it for longer without collapsing the tax system.”

He indicated that any continued relief would likely be limited to a maximum of three months, depending on global developments. 

The Minister also stressed that South Africa is not alone in facing these pressures, as countries worldwide grapple with rising energy costs linked to geopolitical instability.

“If the war continues, a number of countries throughout the world are facing similar challenges,” he said. 

On concerns about a potential recession, Godongwana said it was too early to raise alarm.

“Not at this stage,” he said, adding that inflation is expected to rise moderately by around 1.2 percentage points, remaining within the targeted range.

Government said the relief forms part of a broader, phased response that balances consumer protection with fiscal sustainability, with further support measures expected to be announced in the coming months. – SAnews.gov.za

Government has welcomed the latest Quarterly Employment Statistics (QES) for the fourth quarter of 2025, which reflect a modest increase in total employment and continued growth in gross earnings across the economy. 

Acting Government Spokesperson Michael Currin said the latest QES results reinforce the view that South Africa’s economy has proven itself to be remarkably resilient, despite persistent domestic and global challenges.

He said the quarter-on-quarter rise of 18 000 jobs, driven by gains in key sectors such as trade and business services, alongside a notable increase in wages and bonuses, signals ongoing recovery in economic activity.

“The increase in total employment during the quarter, driven mainly by gains in trade and business services, reflects renewed activity in important areas of the economy. Growth in both full-time and part-time employment further signals improving labour market conditions and sustained demand for labour, particularly in service-oriented industries,” Currin said in a statement on Tuesday.

Government also noted the continued growth in gross earnings, basic salaries and bonuses paid to employees, noting the increases provide a welcome support to household incomes and contribute positively to overall economic momentum. 

Currin reiterated government’s commitment to targeted support measures, structural reforms and investment initiatives, aimed at revitalising affected industries and promoting inclusive growth.

“These encouraging developments coincide with South Africa hosting the sixth South Africa Investment Conference, providing a timely platform to showcase the country’s economic resilience, and improving labour market conditions to global investors. 

“The positive trajectory reflected in the QES strengthens investor confidence and reinforces South Africa’s position as a competitive and attractive investment destination,” Currin said. 

Released on Tuesday, by Statistics South Africa, the QES recorded an increase in employment in the fourth quarter of 2025, with total jobs rising by 18 000 or 0.2% to 10.55 million in December, from 10.53 million in September.

READ | Employment edges up in Q4 2025
The quarterly gain was driven primarily by growth in the trade sector, which added 37 000 jobs, and business services, which increased by 17 000. 

Government, in collaboration with social partners, also committed to continue to build on these positive trends by advancing policies that support job creation, economic recovery and sustainable growth. – SAnews.gov.za

The Department of Petroleum and Mineral Resources (DMPR) has announced that petrol and diesel prices will increase by between R3.06 and R7.51 from midnight.

The increase comes amid government efforts to cushion the blow for consumers through the introduction of a temporary R3 decrease in the general fuel levy.

Prices were widely expected to increase steeply as conflict in the Middle East has triggered global exponential increases in the price of Brent Crude Oil.

The adjusted prices for April are:

• Petrol 93 (ULP & LRP): R 3.06 per litre increase.
• Petrol 95 (ULP &LRP): R 3.06 per litre increase.
• Diesel (0.05% sulphur): R7.37 per litre increase.
• Diesel (0.005% sulphur): R7.51 per litre increase.
• Illuminating Paraffin (wholesale): R11.67 per litre increase. 
• Single Maximum National Retail Price for Illuminating Paraffin: R15.60 per litre increase. 
• Maximum Retail Price of LPGas: R1.08 per kg) increase and R1.23 per kg increase in the Western Cape. 

“The average Brent Crude oil price increased from US$69.08 to US$93.67 during the period under review. This is due to the continued tension between the US and Iran, which has affected crude oil supply, especially through the Strait of Hormuz.

“The average international product prices followed the increasing trend of crude oil price. These factors led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by R5.26 per litre, R9.49 per litre and R10.80 per litre, respectively.

“The prices of Propane and Butane remained the same during the period under review due to lower demand because of the change in season to warmer weather in the Northern Hemisphere. However, shipping costs were higher due to the conflict in the Middle East,” the department explained.

Furthermore, the Rand depreciated against the US Dollar during the period under review – weakening from R16.00 to R16.64 Rand per USD.

“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin by 56.18 c/l, 78.07 c/l and 83.21 c/l respectively,” the department continued.

The temporary reduction of the general fuel levy will take effect in April – bringing relief by some R3 to the price at the pumps. – SAnews.gov.za