Research firm Trade & Industrial Policy Strategies (TIPS) has released its latest Direct Investment Tracker, detailing key developments underway for South Africa.
The Q1 tracker shows the total project investment value is R96.1 billion, with several new developments announced at the 2022 Investment Conference.
The fourth South African investment conference took place in March 2022, after being postponed to 2021. It garnered 80 pledges from foreign and local companies, totaling around R332 billion. Foreign investment has been identified in 34 companies with commitments valued at just over R95 billion.
As usual with this type of investment conference, some of the pledges represent projects already in the pipeline, others are updates to existing projects, or they mix new and existing pledges, TIPS said.
Some of the investments announced by foreign companies at the 2022 Investment Conference include:
TIPS data shows that investments remained 6% below pre-pandemic levels, despite some recovery from mid-2021. They increased by 4.1% in the first quarter of 2022, with an increase of 4.9% of public investment and 4.1% of private investment, which is much larger. However, public enterprises reduced their investments by 1.1%
“Growth in total investment picked up in the six months to March 2022, after plateauing in the first half of 2021. Private investment grew by 4.1% in the first quarter of 2022, about the same level as in the fourth quarter of 2021 (seasonally adjusted terms).
“Despite the relatively rapid growth over these two quarters, it remains 7% lower than it was before the pandemic due to the exceptionally strong decline in the second quarter of 2020.”
The group noted that government investment rose 5%, partially reversing the 7% drop in the previous quarter. As a result, government investment exceeded pre-pandemic levels in the first quarter of 2022. Public enterprise investment, however, continued to stagnate and is now 7% behind pre-pandemic levels.
“Investment fell from 13.0% of GDP in mid-2021 to 13.7% in the first quarter of 2022, mainly due to the increase in private investment. However, it remains well below the level required to stimulate rapid growth and industrialization.
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