Investment Commitments Could Create 230 000 Jobs in SA Says Ramaphosa
Cyril Ramaphosa says investment commitments secured through the South Africa Investment Conference could create approximately 230 000 direct permanent jobs over time.
The President made the announcement while responding to oral questions in the National Assembly on Thursday.
Ramaphosa said government is intensifying efforts to address South Africa’s structural unemployment crisis through investment attraction and economic reforms.
South Africa Investment Conference Secures R890 Billion
According to the President, the 6th South Africa Investment Conference held in March secured investment commitments worth R890 billion.
Ramaphosa explained that around R415 billion of the total investment commitments came from private sector companies, while the remaining funding was pledged by development finance institutions and multilateral development banks.
“Of the 81 confirmed private sector investments, 53 companies submitted employment declarations at the time of signing.
“These 53 investments are projected by the companies to create approximately 230 000 direct permanent jobs,” President Ramaphosa said.
Different Sectors Create Jobs At Different Rates
The President noted that some sectors create more jobs than others depending on whether they are labour-intensive or capital-intensive.
“Labour-intensive investments in global business services and financial services generate approximately 3 900 jobs per R1 billion invested.
“However, capital-intensive sectors, such as renewable energy infrastructure and data centres, generate between 13 and 248 jobs per R1 billion investments,” he said.
Ramaphosa added that several major investment commitments involve the expansion of existing operations.
These include investments by:
- Sasol
- MTN
- Vodacom
- Coca-Cola Beverages Africa
According to the President, these investments will help sustain existing jobs while gradually increasing employment opportunities.
Government Monitoring Investment Projects
Ramaphosa said government is closely monitoring all investment pledges through a quarterly implementation tracker.
This system is intended to ensure that projects move from investment commitments to implementation.
Structural Unemployment Remains A Major Challenge
The President acknowledged that South Africa’s unemployment crisis cannot be solved through investment attraction alone.
“The structural unemployment problem is rooted in skills mismatches, spatial economic concentration, slow growth of the formal private sector and barriers to small business formation,” he said.
Government’s broader economic strategy includes:
- Infrastructure investment
- Industrial policy reforms
- Skills development
- Support for small businesses
- Removing barriers to economic growth
Ramaphosa also announced that government is aiming to secure R3 trillion in new investment commitments over the next five years.
President Extends Condolences To Flood Victims
During his address, the President also extended condolences to families affected by recent flooding in parts of South Africa.
“At least 10 lives have been lost and thousands of people have been displaced.
“Our thoughts and prayers are with the families mourning their loved ones, with those who have lost all they had and with the owners of businesses that have been destroyed.”
He also thanked emergency workers, disaster relief teams and community organisations assisting flood-affected communities across the country.