South Africa remains open for business and is an attractive destination for investments despite the current energy challenges, says President Jacob Zuma.

Addressing a business delegation at the World Economic Forum (WEF) in Davos Switzerland, the President said some areas of the South African economy require more effort especially with regards to the energy sector.

“Our electricity infrastructure, for example, was never designed to serve an expanded citizenry. Last year we celebrated the expansion of electricity to 11 million households. In the past six months of the year we reached more than 100 000 homes.

“This extension of electricity to more households that had been excluded in the past, coupled with a growing economy, has sharply put pressure on the infrastructure, which needs improved maintenance and expansion,” said President Zuma on Wednesday.

South Africa is currently considering options to increase the available electricity generation capacity and to manage demand over the next six months in order to reduce the risk of load shedding.

“We will build on the success of the renewable energy procurement programme to ensure that we have a reliable, flexible, clean and cost competitive electricity generation mix,” he said of the Department of Energy running a procurement programme to expand the generation capacity in the country.

Apart from the Eskom new build programme at Medupi, Kusile and Ingula, government has procured 4000 megawatts from the Independent Power Producers. To date, 923.18 megawatts have been connected to the national grid.

Investment

Additionally, President Zuma spoke of South Africa targeting investment of R50 billion in the year 2013-2014. He said the country has committed itself to achieve 5% growth by 2019 if the country is to create jobs.

“Our target to attract investments for the year 2013-2014 was R50 billion. We have achieved an investment pipeline of R60.5 billion of potential investment projects, reflecting both domestic and foreign projects.

“This indicates that our country remains an attractive destination for investments. South Africa remains fully open for business. We are inviting both domestic and foreign business partners to invest in the South African economy,” he told the business delegation in Davos.

Manufacturing, tourism, mining and beneficiation were some of the key job drivers identified for investment.

“We have added the blue economy in the past year, through our new Operation Phakisa National Development Plan delivery programme, which is aimed at unlocking the potential of our country's oceans.

“The blue economy offers opportunities in marine transport and manufacturing activities, such as coastal shipping, boat building, repair and refurbishment, offshore oil and gas exploration, aquaculture and marine protection services and ocean governance.”

To further boost industrialisation and manufacturing, the country has introduced 10 Special Economic Zones (SEZ), which will help create new industrial hubs and clustering value chains.

He added that mining continues to be the backbone of the country’s economy.

“South Africa is the wealthiest mining jurisdiction in the world with our non-energy mineral wealth being estimated at US$2.5 trillion. We have been working hard together as business, government and labour to stabilise and revitalise the mining sector, and we are making progress,” said President Zuma.

He told the meeting that progress has been made on the establishment of the Tripartite Free Trade Area which includes the Southern African Development Community Common Market for Eastern and Southern Africa, and the East African Community.

The programme is expected to create a market of $2.6 trillion, with a combined population of 600 million people, which is approximately two thirds of Africa's total population.

“Africa is therefore a growth frontier. We urge you as South African business to continue exploring opportunities within South Africa and also the continent.

“There are many opportunities in South Africa. We believe the goals that are outlined in the National Development Plan are achievable,” he said. - SAnews.gov.za

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South Africa, the most open country for Foreign Direct Investment in the world South Africa is committed to improving its global competitiveness and reputation with a view to delivering on its growth and developmental imperatives. South Africa continues to compare well with other emerging markets. According to the OECD’s Restrictiveness Index, South Africa ranks among [...]Open country for Foreign Direct Investment is a post from: South Africa Business

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Pretoria – International Relations and Cooperation Minister Maite Nkoana-Mashabane says South Africa is certain that the Indian government and business sector will partner with it to implement the National Development Plan (NDP). She said the two countries can jointly explore opportunities for mutual benefit. Minister Nkoana-Mashabane was speaking at the 13th Pravasi Bharatiya Divas, Day [...]India called to support SA’s development plan is a post from: South Africa Business

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President Jacob Zuma will lead a South African delegation of Cabinet Ministers and business leaders to the World Economic Forum (WEF) in Davos, Switzerland, from 20-24 January 2015.

According to the Presidency, the World Economic Forum's Annual Meeting brings together world leaders from business, government, international organizations, academia and civil society in Davos to discuss the global economy.

The theme of this year's WEF meeting is The New Global Context, which, according to the Forum organisers, reflects the period of profound political, economic, social and technological change that the world has entered, which has the potential to end the era of economic integration and international partnership that began in 1989.

“South Africa will use the opportunity to market the country as an attractive and reliable investment destination as well as a development partner, in the context of the National Development Plan and in celebration of achievements scored since the dawn of freedom in 1994, which brought about a better life for millions more citizens who had been excluded during the period of apartheid colonialism,” said the Presidency.

The WEF has invited a large contingent of businesspeople who will interact with global business executives in the pursuit of partnerships and opportunities.

The areas of investment that South Africa will be marketing include the following:

· Mining and beneficiation

· Agro-processing

· Industrial infrastructure including telecommunications, energy, water, sanitation and transport

· Tourism (primarily hotel and resort development)

· Healthcare

· Manufacturing

· Information and Communication Technology

· Forestry and related products

The President will be accompanied by Finance Minister Nhlanhla Nene, Trade and Industry Minister Rob Davies, Planning, Monitoring and Evaluation Minister Jeff Radebe, Health Minister, Dr Aaron Motsoaledi, Water and Sanitation Minister Nomvula Mokonyane, Economic Development Minister Ebrahim Patel and the South African Brand Ambassador, Dr Zweli Mkhize. – SAnews.gov.za

Energy Minister, Tina Joematt-Pettersson, has welcomed the huge decrease in the fuel prices, saying they will be a big relief to motorists and users of Liquefied Petroleum Gas (LPG) and paraffin, especially in low income households.

The Department of Energy on Friday announced that the prices of petrol, diesel, Illuminating paraffin and LPG will decrease with effect from 7 January 2015.

Petrol will decreaseby 127 cents/litre, diesel will decrease by 105 cents/ litre, illuminating paraffin (SMNRP) will decrease by 144 cents/litre and LPG will decrease by 210 cents/kilogram.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

According to the department, the main reason for the fuel price decreases is the continued drop in the price of crude oil which led to a decrease in the prices of petroleum products - petrol, diesel, Illuminating Paraffin and LPG - in the international markets.

However, the depreciation of the Rand against the US Dollar led to an increase in the contribution to the Basic Fuel Price by between 17.92 cents/litre and 19.75 cents/litre. This was off-set by the drop in the crude oil price during the period under review.

The slate levy on petrol and diesel remain unchanged at zero cents per litre, due to positive cumulative over-recoveries on these products, said the department. – SAnews.gov.za

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