In his latest weekly letter, From the Desk of the President on 18 May 2026, President Cyril Ramaphosa reflects on the impact of capital commitments by South African investors. Since the start of this year, we have held a series of high-profile engagements with domestic and international investors. These have included business forums on the margins of visits to Brazil and Spain, the sixth South Africa Investment Conference in March, and, last week, an Infrastructure Investment Summit convened by BlackRock, one of the world’s largest infrastructure investment managers. These engagements are not ‘just for show’, as some people have suggested. They are an opportunity to connect investors with local opportunities, and bring together governments, business, banks and development finance institutions. Around the world, investment conferences and summits are platforms to attract foreign direct investment in a global investor landscape that has become increasingly competitive. The fact that international and domestic investors are willing to commit capital to South Africa demonstrates confidence in our country as an attractive investment destination. Since we launched our first national investment drive in 2018, we have attracted investments in energy, telecoms, infrastructure, automotive, mining, advanced manufacturing and many other sectors. On the back of R1.5-trillion in pledges, a total of R634-billion has already been invested into factories, mines, data centres, power plants and other infrastructure, and have been creating jobs. These include the R4.2-billion investment by BMW to electrify its Rosslyn plant in Gauteng and to support new energy vehicle production; the R500-million investment by Tetra Pak to upgrade its plant in KwaZulu-Natal; Corobrik’s R500-million investment to build its Kwastina plant in Gauteng; and the Newlyn PX terminal in the Port of Durban that began operating in 2024. Last year, I opened the Ivanplats Platreef mine in Mokopane, which originated from a R2.8-billion investment conference pledge. In addition to creating jobs, these investments are supporting skills development to better equip young South Africans for the rapidly evolving world of work. For example, Microsoft has partnered with the Youth Employment Service (YES) to offer globally recognised certification in high-demand AI Skills. This forms part of a more than R5.4-billion investment by Microsoft to expand its cloud and AI infrastructure in South Africa by 2027. We welcome all forms of investment, whether it is planned or new. Investment is a long-term commitment. Moving from pledges to large-scale growth and employment creation takes time, particularly in sectors where projects take years to reach implementation. The reality is that we are a long way from where we need to be. One of the most used measures of investment in the economy is gross fixed capital formation (GFCF), which is currently around 14% of our gross domestic product. The National Development Plan challenges us to reach 30% by 2030. Our GFCF reached around 21% in 2008, driven by a sustained commodity boom, the start of Eskom’s build programme and infrastructure expansion ahead of the 2010 FIFA World Cup. There has been a steady decline since then, as the global financial crisis and the period of state capture progressively undermined private investment and business confidence. Since 2018 we have sought to arrest this decline. We have matched intent with action, moving to stabilise public finances, resolve the energy crisis and advance structural reforms. Yet there is still a disconnect between improved investor sentiment and greater investment. The message we have been taking to our meetings with investors is that we are creating the conditions for growth and providing the necessary policy certainty. As we reiterated at last week’s Infrastructure Investment Summit, we are improving project planning, funding and execution. Through this, we aim to narrow the gap between investment pledges, implementation and eventually job creation. We aim to encourage the substantial private capital that is in reserve to be used for productive domestic investment. According to the South African Reserve Bank, by July 2025 South Africa’s non-financial companies held R1.8-trillion in reserves. The task of building a more prosperous, inclusive society is a collective one. It relies on productive investment at scale. That is why we are encouraged that the greatest number of pledges made at the sixth South Africa Investment Conference were from domestic investors. Local businesses – those who know our economic and social conditions best – are making substantial investments in our economy. As we forge ahead with efforts to attract new investment, we call on the local private sector to be at the forefront of rebuilding investment momentum in our economy. Their confidence will encourage more international capital to follow. It is now abundantly clear that the engagements and commitments made in conference halls are steadily and increasingly translating into the economic activity that creates jobs and opportunities for South Africans.
