Alvin Botes applauds vital investments that Portugal made in SA

South Africa stays a lovely and profitable funding vacation spot, the place the return on investments is excessive and alternatives abound for each overseas and home traders, says Worldwide Relations and Cooperation Deputy Minister, Alvin Botes.

The Deputy Minister made the remarks throughout a commerce and funding seminar in Porto, Portugal, on Monday.

Addressing delegates, Botes applauded the numerous investments that Portugal has made in South Africa over time.

“We want to point out, particularly, the R200 million funding by Sonae Auraco within the forestry sector within the province of Mpumalanga, and the partnership between CR Moulds Portugal and MCR Plastics within the Jap Cape (Gqeberha) and Gauteng (Silverton), a black-owned firm in South Africa [that] companies the automotive sector.

“The latter venture is critical as a result of it aligns with our authorities’s precedence to remodel the automotive trade and to make it extra inclusive,” he mentioned.

At the moment, South Africa’s commerce with Portugal is ruled via the EU-SADC Financial Partnership Settlement (EPA). The EPA makes it simpler for individuals and companies to spend money on and commerce with one another, and to encourage improvement throughout Southern Africa.

The Deputy Minister mentioned the stream of products and companies between South Africa and Portugal has grown steadily over the previous few years, even amid the COVID-19 pandemic.

From 2012 to 2021, whole commerce between South Africa and Portugal elevated from roughly R2 billion in 2012 to roughly R7.5 billion in 2021. The commerce stability is at present skewed in favour of Portugal. The Deputy Minister is hopeful that such occasions will help in addressing this imbalance.

Confidence in SA

Botes mentioned the expansion within the Portuguese enterprise neighborhood in South Africa is a superb demonstration of confidence within the South African economic system, and within the nation as a lovely vacation spot for vital funding.

“South Africa is a thriving democracy with a complicated and various economic system, a classy and well-regulated monetary sector, and in depth transport, telecommunications and power infrastructure. As authorities, we’re working onerous to create a dynamic and enabling enterprise surroundings that can promote better productive funding in our economic system,” he mentioned.

He welcomed ranking company Commonplace & Poor International’s latest choice to improve South Africa’s financial outlook to constructive from secure, attributable to enchancment within the nation’s fiscal place (boosted by a rise within the costs of commodity exports, which, in flip, improved tax revenues).

This got here on the again of S&P International’s peer, Moody’s, making an analogous transfer in April when it upgraded South Africa’s outlook from damaging to secure.

The Deputy Minister mentioned the upward revision is attributed to the decisive steps taken by authorities in direction of extra predictable and clear insurance policies.

“This indicators that South Africa’s macroeconomic and political fundamentals are in place, reinforcing our place as a reputable funding vacation spot.”

Botes mentioned it’s inside this context that SA had launched into the go to to Portugal to convey the message that South Africa is open for funding.

“We invite our Portuguese buddies to comply with the lead of the numerous EU corporations which have already invested within the nation, understanding that the important thing to financial development and job creation lies in a lot better ranges of funding.

“South Africa has launched into an bold funding drive, which goals to lift $100 billion in new funding over 5 years.

“We have now already achieved 95% of this goal in funding commitments over the past 4 years. Subsequent yr would be the final instalment of the Presidential Funding Convention, and we hope to see extra bulletins from Portugal on the occasion,” he mentioned.

Enhancing the enterprise surroundings

As a part of the funding drive, the nation is intensifying efforts to enhance the enterprise surroundings.

Botes mentioned authorities has put in place a “very enticing bundle of incentives” administered by the Division of Commerce Business and Competitors. Entry to those incentives is facilitated by Make investments South Africa.

“This establishment has been established to help potential traders in figuring out alternatives and facilitating a seamless funding course of,” he mentioned.

The Deputy Minister mentioned he was inspired by the keenness of Portuguese and South African companies.

“I sincerely imagine that the sturdy ties of goodwill between our international locations will certainly translate into financial beneficial properties for all our individuals. Because the South African authorities, we stay dedicated to making a enterprise surroundings that’s conducive in direction of supporting commerce and funding.”

(With Inputs from South African Authorities Press Launch)

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