A leading United States investor has announced plans to invest over $1-billion (R14.1-billion) in South Africa over the next few months.

This follows after Finance Minister Malusi Gigaba tabled what was according to a statement, a difficult medium-term budget in Parliament on Wednesday.

According to a statement from the South African government, Ambassador Harold Doley, Jr, a Governor of the African Development Bank, said as an international investor, the medium-term budget, which gave a frank assessment of the state of the fiscus and the economy, has signalled for investors to commit resources to South Africa.  

“We think that what you have done is tabled a watershed budget and as an international investor, you have sent a signal to a group of investors that I represent as a lead investor that we are going to invest over the next several months,” Doley said in a statement.

Doley said that international investors were committing over $1-billion to invest in the South African economy in technology, education and agribusiness.

He added that technology is the future to train young people, to employ young people and investors wanted to partner South Africa.

“I am going to tell you something you will seldom ever hear, we want to come here and pay taxes, we want to make money so we can help you with your deficit,” Doley said.

His remarks come after Minister Gigaba tabled a difficult budget, which saw National Treasury announcing a revenue shortfall as a result of a number of factors, from the recapitalisation of the South African Post Office (Sapo) and the South African Airways (SAA), to low tax compliance that eroded the tax revenue base.

Doley’s announcement came during a question and answer session facilitated by the South African Broadcasting Corporation (SABC) Morning Live anchor Leanne Manas on Thursday.

During the conversation, Gigaba said South Africa’s economic growth can be turned around if a number uncertainties are addressed to boost investor confidence.

The Minister also urged the private sector to get more involved and partner with government to stimulate the economy on a positive trajectory.

He said this during a breakfast conversation hosted by Independent Media’s Business Report under the banner BR Ignite, in Cape Town.

In his medium-term budget, the Minister announced a downward revision of projected economic growth to 0.7% from 1.3% in February.

He also announced measures to avoid an expenditure ceiling breach and to arrest the widening of the budget deficit, as well as a package of measures aimed at stabilising government debt.

“The 0.7% growth that we projected for this year can be changed by us. If the government increases the scale and pace of structural reforms and we resolve a number of uncertainties around the telecommunications issues, the spectrum policy, if we resolve the deadlock around mining, if we resolve and implement even the SOE reforms and reduce the debt of the SOEs,” he said.

He also called for the private sector to get more involved and partner with government to stimulate growth and create jobs.