Finance Minister Enoch Godongwana
Photo by: Bloomberg
South Africa’s delegation to the World Economic Forum (WEF) will present the country’s investment case, which Finance Minister Enoch Godongwana has described as “compelling”, to international investors, despite the challenges the country is grappling with.
He was speaking to the media at a pre-WEF briefing, in Johannesburg, on January 11, ahead of the forum being held in Davos, Switzerland, next week.
He emphasised that South Africa’s key focus at the forum will be investment, as this drives growth.
Godongwana acknowledged that the country had myriad structural challenges impacting on the economy, and that the delegation was cognisant of these, namely in electricity, logistics, crime and corruption.
However, he averred that there were strategies and roadmaps in place to address these.
Therefore, Godongwana said that the delegation would look to sell the country, cognisant of its issues, but also outlined that it was working on resolving these and has the requisite capacity to do so.
He highlighted that “as the most industrialised economy in Africa”, with strength in areas such as science and technology, and a strong industrial profile, South Africa still presented a compelling case for investment.
Also highlighted during the briefing South Africa’s capacity for renewable energy projects and the considerable private sector appetite for this.
However, it was reiterated that the country needed to strengthen its grid to accommodate these projects.
Therefore, the delegation will also be having conversations to determine the conditions for investment in this regard, so that this can be used to refine the country’s transmission model.
Also mentioned was the opportunity for investment in infrastructure in the public and private healthcare system, with the passing of the National Health Insurance Bill last year, and the need to expand both private sector and basic primary healthcare as well.