South Africa ramps up investment drive with sixth conference and bold R2 trillion target

South Africa is set to host its sixth South Africa Investment Conference later this year, as the Government of National Unity (GNU) accelerates its push to attract R2 trillion ($108.11 billion) in new investments by 2028. The announcement was made by President Cyril Ramaphosa during the presidency's budget vote debate, highlighting the event as a key part of efforts to stimulate inclusive economic growth, job creation, and global investor confidence. This new investment target follows the successful conclusion of the previous five conferences, which collectively secured more than R1.2 trillion in pledges, surpassing the initial goal set in 2018.

Ramaphosa emphasized that the investment conferences are not only about headline-grabbing announcements, but are also vital for building long-term partnerships, demonstrating policy consistency, and unlocking real economic value. In 2024 alone, South Africa saw R445 billion in new project announcements, the highest level of fixed infrastructure investment in three years. These investments span key sectors such as renewable energy, manufacturing, mining, digital technology, and agriculture, each of which plays a critical role in the country's strategy to diversify and modernize its economy.

To attract investors, South Africa is implementing a range of measures that enhance the country's investment climate. These include structural reforms through initiatives like Operation Vulindlela, which fast-tracks improvements in key areas such as energy, logistics, and visa processes. The government is also offering targeted incentives in Special Economic Zones (SEZs), where companies benefit from tax breaks, duty exemptions, and access to streamlined infrastructure. Agencies such as InvestSA and the Presidential Investment and Infrastructure Office are playing a crucial role in facilitating investor support, reducing red tape, and ensuring smoother entry into the local market.

South Africa's appeal is further strengthened by its access to major trade agreements, including the African Continental Free Trade Area (AfCFTA) and the EU-SADC Economic Partnership. These allow investors to use South Africa as a gateway to broader African and global markets. However, the country faces growing risks, particularly from looming trade tensions with the United States. A potential 30 percent tariff on South African exports could jeopardize up to 100,000 local jobs, according to Reserve Bank Governor Lesetja Kganyago, placing pressure on the GNU to find diplomatic solutions while sustaining investor confidence.

Despite these challenges, the sixth Investment Conference is poised to be a defining moment in South Africa's renewed economic journey. With a sharper focus on policy alignment, inclusive development, and the just energy transition, the country is positioning itself as a compelling destination for global capital. As the government works to meet its R2 trillion target by 2028, the conference will not only showcase new investment opportunities but also reinforce South Africa's commitment to building a stable, competitive, and future-ready economy.