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SOUTH AFRICA’SINVESTMENT

ENVIRONMENT, OVERVIEW &

OPPORTUNITIES

Mr Nyameko Goso: SA Consul-General-Toronto

Economy Composition

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South African Investment 2003-2017

Investment into South Africa

Proportion %

Investment from SouthAfrica

Proportion %

1. United States 19.97% 1. United Kingdom 10.28%

2. United Kingdom 19.69% 2. Nigeria 5.60%

3. Germany 6.70% 3. United States 4.98%

4. China 6.14% 4. Kenya 4.82%

5. France 5.72% 5. Ghana 4.67%

6. India 4.32% 6. Zambia 4.51%

7. Italy 3.91% 7. Namibia 3.89%

8. Switzerland 3.07% 8. Mozambique 3.42%

9. Japan 2.93% 9. Germany 3.11%

10. Netherlands 2.93% 10. India 2.64%

Source: Financial Times: FDI Markets

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South African Trade 2016

Source: Quantec

Export partners US $ bn Import Partners US $ bn

1. China 9.2 1. China 19.9

2. USA 7.6 2. Germany 12.2

3. Germany 6.6 3. USA 7.6

4. Namibia 5.2 4. India 5.3

5. Botswana 5.2 5. Japan 3.9

6. Japan 5.0 6. Nigeria 3.8

7. United Kingdom 4.1 7. UK 3.5

8. India 4.0 8. Saudi Arabia 3.3

9. Belgium 2.8 9. Italy 2.8

10. Mozambique 2.7 10. Thailand 2.6

Total 52.4 Total 64.9

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South African Investment Sectors

Source: South African Reserve Bank Quarterly Bulletin March 2017

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STRENGTHS OF SOUTH AFRICA’S PROVINCES

•

Western Cape:

•Tourism

•Agro-processing

•Biotechnology

•Petrochemicals

•Clothing and textiles

•Fishing

Northern Cape:

•Agro-industries

•Transport and storage

•Mining and beneficiation

North West:

•Agro-processing

•Bio-fuels

•Leather products

•Mining

Limpopo:

•Food processing

•Agri-business

•Mining

•Fertilisers and pesticides

•Energy

Mpumalanga:

•Tourism

•Mining (Coal)

•Forestry

•Agriculture

•Agro-processing

Gauteng:

• Financial and business

services

• ICT

• Pharmaceuticals

• Food and beverages

• Mining

Free State:

•Agriculture

•Agro-processing

•Machinery and equipment

•Mining and beneficiation

Eastern Cape:

•Agriculture and forestry

•Aquaculture

•Automotive

•Clothing and textiles

•Leather and leather products

KwaZulu-Natal:

•Aluminium

•Automotive

•Petrochemicals

•Wood and wood products

•Tourism

•Clothing and textiles

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The African Continental Free Trade Area (AfCFTA) is the result of the African Continental Free Trade Agreementamong all 55 members of the African Union. If ratified, the agreement would result in the largest free-trade areain terms of participating countries since the formation of the World Trade Organization.

SOUTH AFRICA- INVESTMENT CONFERENCE:

OCT 2018

President Cyril Ramaphosa reported nearly R290 billion worth of investment pledges from local and international companies.

• PwC’s Strategy& calculations suggest that this investment would add an estimated R338 billion to South Africa’s GDP over the 2019–2024 period, create or sustain an estimated 825 000 direct and indirect jobs (on average per year) and generate an estimated R59 billion in additional government revenue.

• In addition, the investment would enable some R468.8 billion in potential production from 2025 to 2035. This production would, over the ten-year period, add an estimated R505 billion to South Africa’s GDP, create and/or sustain an estimated 116 000 direct and indirect jobs (on average per year) and generate an estimated R133 billion in government revenue.

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Priority Sectors For FDI

• Advanced Manufacturing

• Nanotechnology

• Metals

• Mining & Beneficiation

• Biofuels

• Agribusiness

• Automotives & Components

• Capital Equipment

• Precision engineering

• Aerospace

• Film production

• Tourism

• Oil & Gas

• Boat Building

• ICT and electronics

• BPO (Business Processing &

Outsourcing) and Call Centres

• Chemicals & Biochemicals

• Plastics & Composites

• (Bio) Pharmaceuticals & Medical

Devices

• Leather and footwear

• Forestry products & Furniture

• Energy and Renewables

• Infrastructure Development

• Waste Management

• Energy Efficiency & Cleaner

Technology

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SA Automotive Industry: Structure

• The FAW SA plant, at a start-up cost of $60m, was the first large investment in the Eastern Cape by a China-based company. A number of China-based companies are considering following suit, while, Beijing Automotive, has already started construction of its new factory in Coega.

• Japanese vehicle manufacturers represented in SA – Nissan/Renault and Toyota are both wholly owned subsidiaries.

• Other Multinational manufacturers, Mercedes Benz, BMW, VW, General Motors, and Ford are also 100% controlled subsidiaries

• Other major makes imported – European (Peugeot/Citroen), Japanese (Daihatsu, Honda, Subaru), Korean (Daewoo, Hyundai, Kia), Indian (Tata, Mahindra), with Chinese brands recently entering the SA market (Chery, Chana, Foton, GWM)

• More than 400 auto component suppliersincluding global first tier suppliers such as Faurecia, Johnson Controls and Benteler

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Proposed SEZS In South Africa

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THANK YOU