SOUTH AFRICA: REPLETE WITH OPPORTUNITIES FOR A BETTER …

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SOUTH AFRICA: REPLETE WITH OPPORTUNITIES

FOR A BETTER WORLD

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CONTENTS

SOUTH AFRICAN ECONOMY: COUNTLESS INVESTMENT

AND TRADING OPPORTUNITIES

10 reasons why you should invest in South Africa

South Africa at a glance

A bird’s-eye view of the economy and investment activity

The economy is on a recovery path afterthe Covid-19 crisis

An export-oriented economy

Positioned to benefit considerably fromthe African Continental Free Trade Area

Committed to a sustainable and inclusive future

SECTOR PERSPECTIVES AND OUTLINE OF INVESTMENT OPPORTUNITIES

Agriculture and agro-processing

Mining

Manufacturing

Services

Infrastructure

Energy

Tourism

CONCLUDING REMARKS

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Published in October 2021Compiled by the Industrial Development Corporation of South Africa (IDC) and InvestSA

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CONTENTS

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SOUTH AFRICAN ECONOMY:COUNTLESS INVESTMENT AND TRADING OPPORTUNITIES

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ABUNDANT NATURAL RESOURCES• Largeanddiversifiedmineralresource endowment• Hometoseverallistedminingcompanies• World-renownedundergroundmining expertise

ADVANCED FINANCIAL SERVICES AND BANKING SECTOR• Sophisticatedbankingsystemwithmajor footprintacrossAfrica• Continent’sfinancialhub• HometoAfrica’slargeststockexchange bymarketcapitalisation

WORLD-CLASS INFRASTRUCTURE AND LOGISTICS• Highlydevelopedeconomicinfrastructure• Largestnetworksofair-andsea-ports, aswellaslogisticsinAfrica• Largeinfrastructuredevelopment programmeunderway

YOUNG, EAGER LABOUR FORCE• World-classtertiaryeducationsystem producingaskilled,talentedandcapable workforce• Diversifiedskillsset• Strongskillsdevelopmentsupportsystem

EXCELLENT QUALITY OF LIFE• Favourablecostofliving• Generallysuperbweatherallyear• Diversifiedcultural,cuisineandsports offering• World-classhospitalitysector

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PROVIDES INVESTORS ACCESS TO GLOBAL MARKETS• Severaltradeagreementssupportexport marketgrowthprospects• Exportpotentialboostedby AfricanContinentalFTA

LARGEST PRESENCE OF MULTINATIONAL CORPORATIONS IN AFRICA• Locationofchoiceformultinationals inAfrica• Supportiveecosystemasahubfor innovation,technologyandfintech

PROGRESSIVE CONSTITUTION AND INDEPENDENT JUDICIARY• Mature,accessiblelegalsystemprovides certainty,respectforruleoflaw• Soundregulatoryframeworkadhering tointernationalstandards

MOST DEVELOPED ECONOMY IN AFRICA• Mostindustrialisedanddiversified economyonthecontinent• PrincipalmanufacturinghubinAfrica• Leadingservicesdestination

VIBRANT EMERGING MARKET• Oneofthemostsophisticatedand promisingemergingmarkets• Affluentconsumerbase,growing middleclass• Industrialbasetodrivelong-termreturns oninvestment

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10REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

Sources: Invest SA, Industrial Development Corporation (IDC)

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SOUTH AFRICA AT A GLANCE

Gross domestic product

Inflation

Prime lending rate

External trade

Exchange rate

2020:ZAR5.52trillion(USD335.4billionat2020averageexchangerate)

2020:3.3%Jan-Aug2021average:4.2%

October2021:7.0%

Merchandiseexports:2020:ZAR1395.0billionJan-Aug2021:ZAR1199.6billion

Merchandiseimports:2020:ZAR1123.4billionJan-Aug2021:ZAR864.7billion

2020 average:USD1.00=ZAR16.46

September2021average:USD1.00=ZAR14.59

Population

Land

Mineralresources

Electricity

Transportandlogistics

InformationTechnology

• 60.1million• 39.6millionpeopleintheworking-age category• Youngpopulation(63%undertheage of35)• Highlyurbanised(67.4%ofpopulation in2020)

• Totallandarea:1219090km2

• Agriculturalland:79.4%ofentire landarea• Arableland=9.9%;permanentcrops 0.3%;permanentpasture69.2%; forest7.6%• 16700km2underirrigation

Producerofkeyminingandmineralproducts(2020):• Platinumgroupmetals:226.5tonnes• Gold:95.8tonnes• Coal:247.1milliontonnes• Ironore:55.6milliontonnes• Manganese:16.1milliontonnes• Chromeore:14.5milliontonnes• Industrialminerals:67.6milliontonnes• Diamonds:8millioncarats

Totalenergygenerationcapacityof51.6millionkW(2020estimate)• Mainlycoal-firedpowerstations (circa70%ofgenerationcapacity)• Deliberatemovetodiversifyenergymix byintroducingrenewableenergy (solar,wind,other)• Ranked10thamongG20countriesfor renewableenergyinvestment conditions(2017)

• 144airportswithpavedrunways• Railways:20986km• Roads:747014km(paved:158952km)• 8seaports:Durban,RichardsBay, EastLondon,Ngqura,PortElizabeth, MosselBay,CapeTown,SaldanhaBay• 2oftheworld’stopcontainerports: Durban,CapeTown• 2oftheworld’slargestdrybulkports: RichardsBayandSaldanhaBay

• Highestnumberofsecureinternet serversinAfrica• Ranked3rdinAfricaontheInformation andCommunicationsTechnology DevelopmentIndex

Sources: Statistics South Africa (Stats SA), Department of Mineral Resources, National Treasury, South African Reserve Bank (SARB), South African Revenue Service (SARS), World Bank

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A BIRD’S-EYE VIEW OF THE ECONOMY• SouthAfrica’sZAR5.52trillioneconomy(USD335.4billion*)isthe33rdlargest**intheworldandrepresentscirca 14%oftheAfricancontinent’soverallGDP.• Theeconomyishighlydiversifiedfromasectoralperspectiveandthemostdevelopedandtechnologicallyadvanced economyontheAfricancontinent.• SouthAfricahasoneofthemostopeneconomiesintheworld(exportsandimportscollectivelyrepresented approximately51%ofGDPin2020),withpreferentialaccesstonumerousglobalmarkets.• Fixedinvestmentactivityisspreadacrossallbroadsectorsoftheeconomy,withthefinancialservices,realestateand businessservicessectorclaimingthelargeshareonanannualbasis.• Theprivatesectoraccountedfor71%ofoverallfixedinvestmentexpenditure,onaverage,overthepast3years.• Foreigndirectinvestment(FDI)inflowshaveincreasedsubstantiallysincetheonsetofdemocracy,withFDIstock representing36.3%ofGDPin2019,ascomparedto6.6%in1994.• AlthoughtheUnitedKingdomremainsthelargestsourceofFDI,investorsfromseveralothercountrieshavebeen increasinglyattractedtoSouthAfricaoverthepastdecade.

Diversified economy from a sectoral perspective, wellplaced to support sustainable industrial development …

Sectoral composition of GDP in 2020

… manufacturing, mining and agriculture sectors claimed29% of fixed investment activity over the past 3 years

Sectoral distribution of fixed investment expenditure (average for 2018 to 2020)

Private business enterprises account for the bulk of fixedinvestment activity …

Fixed investment expenditure by type of organisation (average for 2018 to 2020)

… FDI originates from several source countries, dominatedby the UK, Netherlands, USA, Japan and China

FDI inflows and FDI stock as a ratio of GDP

Notes: * Based on the average USD/ZAR exchange rate for 2020. ** Based on GDP in 2020, PPP valuations Source (charts): IDC, compiled using Stats SA and SARB data.

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Accommodative monetary policy in a moderate inflationenvironment to support economic activity in the years ahead

Consumer price inflation and the repo rate

THE ECONOMY IS ON A RECOVERY PATH AFTER THE COVID-19 CRISIS• Theeconomyrecordedbetterthananticipatedgrowth duringthefirst6monthsof2021,aclearindicationthat thepost-pandemicrecoverymomentumisfirmlyontrack.• Strongglobaldemandandhighercommoditypriceshave underpinnedarobustexportperformance,leadingtothe largesttradesurplusonrecordduringthefirst8months of2021.• Areboundinfixedinvestmentactivityisexpectedfrom 2022onwards,drivenbyimprovingbusinesssentiment andopportunitiesopeninguponthebackofstructural reformsandincreasinglocalandexportdemand.• Aprogressiverecoveryinhouseholdconsumptionis anticipated,supportedbyaccommodativemonetary policy,improvingconsumersentimentandrising disposableincome.• Inflationarypressuresintheeconomyhaveremainedwell contained,providingtheSouthAfricanReserveBank (monetaryauthority)scopetokeeptherepurchase(repo) rateatamulti-decadelowof3.5%.• EffectiveimplementationoftheEconomicReconstruction andRecoveryPlan(ERRP)expectedtopropelthe economy’sgrowthtrajectoryhigher.

• Growth-enhancingpolicyreformsandprogrammes.• Large-scaleinvestmentininfrastructuredevelopment withincreasingprivatesectorparticipation, prioritisationofpublicspendingtowardscapital investment.• Industrialandtradepolicytosupportcompetitiveness, privatesectorinvestmentandlong-termgrowth.• Technologyenhancementtoimprovecompetitiveness andthedynamismofindustries.• Attractiveincentivesandfinancingprogrammesfor industrialdevelopmentandinvestmentpromotion, particularlyinthe13specialeconomiczones.• Enhanceexportmarketdevelopmentbyleveraging onexistingtradeagreements,includingtheAfCFTA.• Reducebarrierstoentryinvarioussectorsofthe economytoencourageinvestmentandsmall businessdevelopment.• Improvetheeaseofdoingbusinessthrougha supportiveregulatorysystem.• Strongfocusonthetransitiontowardsalow-carbon economyandthedevelopmentofthegreenand digitaleconomiesinfutureyears.

Economic Reconstruction and Recovery Plan (ERRP)torekindleeconomicactivitypost-pandemicinamannerthatensures sustainability,resilienceandinclusiveness

Sources (charts): IDC, compiled using Stats SA, SARB and International Monetary Fund (IMF) data.

Economic recovery well on track, as reflected by significantrebound in most sectors in the first semester of 2021 ...

Change in real GDP: 1st semester of 2021 vs 2nd semester of 2020

...real GDP should expand by 5% or more in 2021, following a 6.4% contraction in 2020 due to the Covid-19 crisis

Real GDP growth in selected economies

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Solid export growth reflects relative competitiveness in key sectors of the economy

South Africa’s trade balance according to broad sector in 2021 (January to August)

AN EXPORT-ORIENTED ECONOMY

• Exportsofgoodsandservicesrepresented27.8%of GDPin2020,illustratingtheimportanceofexternal marketsfortheeconomyatlargeandspecificsectors.• Mininghasthehighestexportpropensity(67%)ofall sectorsoftheeconomy.• Themanufacturingsectorhasanexport:output coefficientof26.7%,while27.4%ofallagricultural productswereexportedin2020.• Favourableweatherconditionshavesupportedrobust outputlevelsacrosstheagriculturesector,contributing tomuchincreasedexportsofseveralproducts, includingcitrusfruit,grapes,applesandpears,as wellasmaize.• AsurplusamountingtoZAR334.9billionwasrecorded onthebalanceoftradeoverthefirst8monthsof2021 –thelargestonrecord.

South Africa’s merchandise exports are dominated by mining and mineral exports, as well as by several manufactured product categories

South Africa’s merchandise export basket in 2020 (ZAR 1 395 billion)

Sources (charts): IDC, compiled using SARS data

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AN EXPORT-ORIENTED ECONOMY• Motorvehiclesarethelargestmanufacturedexport productcategory,destinedmainlyfortheEurozone,the UKandtheUSA.• Chinaistheprincipalexportmarketforseveralindustrial commodities,butplatinumisprimarilyexportedtothe USA,JapanandUK.• Africanmarketsaccountedfor20%ofSouthAfrica’s exportsoverthefirst8monthsof2021.• Globalgrowth,animprovingeconomicoutlookforthe AfricancontinentandtheimplementationoftheAfCFTA shouldboostSouthAfrica’sexportperformancegoing forward.

Regional destinations of South Africa’s exports in 2021 (January - August)

(% share of total SA exports)

Top 8 exports to the United StatesDescription ZAR billionUnwroughtplatinum 35.2Passengervehicles 6.4Ferro-alloys 4.7Unwroughtaluminium 3.3Catalyticconverters 2.8Ironandsteelslag 2.8Titaniumore 2.6Aluminiumplates 2.3Other 36.4Total 96.5

Top 8 exports to EurozoneDescription ZAR billionPassengervehicles 52.3Commercialvehicles 20.1Ironore 11.2Catalyticconverters 10.9Unwroughtplatinum 9.5Preciousmetalsore 8.2Ferro-alloys 8.1Citrusfruit 6.9Other 106.4Total 233.8

Top 8 exports to sub-Saharan Africa*Description ZAR billionRefinedpetroleum 22.6Commercialvehicles 12.6Coal 4.9Diamonds 4.8Passengervehicles 4.6Earthmovingmachineryparts 4.3Pumpsforliquids 3.8Maize 3.7Other 267.5Total 328.9

Top 8 exports to JapanDescription ZAR billionUnwroughtplatinum 32.5Passengervehicles 6.3Ironore 4.3Ferro-alloys 3.2Manganese 2.1Woodchips 2.1Unwroughtaluminium 1.7Articlesofironandsteel 1.1Other 7.9Total 61.2

Top 8 exports to IndiaDescription ZAR billionCoal 34.1Manganese 3.8Chemicalwoodpulp 2.5Ironore 1.8Unwroughtplatinum 1.1Petrolengines 1.0Ferrousscrap 1.0Fluorineminerals 0.6Other 10.2Total 55.9

Top 8 exports to ChinaDescription ZAR billionIronore 49.4Manganese 27.8Chromeore 14.4Ferro-alloys 12.8Unrefinedcopper 3.1Wool 3.1Zirconiumores 3.0Chemicalwoodpulp 2.7Other 22.4Total 138.9

Top 8 exports to United kingdomDescription ZAR billionUnwroughtplatinum 29.7Commercialvehicles 8.0Passengervehicles 5.6Citrusfruit 2.2Grapes 2.0Wine 1.9Catalyticconverters 1.8Applesandpears 1.2Other 14.1Total 66.3

Top 8 exports to United Arab EmiratesDescription ZAR billionDiamonds 7.4Ferroalloys 5.6Citrusfruit 1.5Coal 1.2Coal-tardistillates 0.9Applesandpears 0.5Passengervehicles 0.4Chromeore 0.4Other 6.8Total 24.6

Note: * South African exports of chrome ore (ZAR 7 billion) and iron ore (ZAR 4.9 billion) to sub-Saharan Africa were excluded from the Top 8 as these were destined to Mozambique in transit to global markets via the port of Maputo. Source (charts): IDC, compiled using SARS data.

The 8 largest global markets for South Africa’s merchandise exports over the period 2018 to 2020, the Top 8 products exported and their corresponding average annual export values over this period …

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Incentives offered by SEZs include:• Provisionoftargetedinvestmentincentives,supporttoexporters• Preferential15%corporatetaxratein6SEZs• Value-addedtaxandcustomsdutysuspensionin customs-controlledareas• Employmentincentives• Buildingallowances• Preferentiallandrental andutilityrates

13 SEZs in 8 provinces:• Atlantis(WesternCape)• Coega(EasternCape)• DubeTradePort(KwaZulu-Natal)• EastLondon(EasternCape)• MalutiaPhofung(FreeState)• Musina-Makhado(Limpopo)• Namakwa(NorthernCape)(prospective)• Nkomazi(Mpumalanga)• ORTamboInternationalAirport(Gauteng)• RichardsBay(KwaZulu-Natal)• SaldanhaBay(WesternCape)• TshwaneAutomotive(Gauteng)• Vaal(Gauteng)(prospective)

AN EXPORT-ORIENTED ECONOMY

Several trade agreements underpin export-related industrial development

• SouthAfrica,amemberoftheWorldTradeOrganisation,hasgainedpreferentialaccessintokeyworldmarketsthrough favourabletradeagreementsandasamemberstateofregionaleconomiccommunities,specificallytheSouthern AfricanDevelopmentCommunity(SADC)andtheSouthernAfricanCustomsUnion(SACU).

Agreement name Type of agreement Countries involved

South Africa, Botswana, Lesotho, Eswatini, Namibia

Southern African Development Community (SADC) Free Trade Area (FTA)

African Continental Free Trade Area (AfCFTA) Economic Partnership Agreements (EPAs) Free trade agreement SACU-EU EPA plus Mozambique and AngolaEuropean Free Trade Association / Southern African Customs Union Free trade agreement (EFTASACU) FTA

African Growth and Opportunity Act Unilateral assistance measures (AGOA) (non-reciprocal) Generalised System of Preferences (GSP) Unilateral (non-reciprocal) SACU and Argentina, Brazil, Paraguay and Uruguay

Southern African Customs Union (SACU) Customs union

Progressive liberalisation of tariffs 54 member states of the African Union (AU)

USA and 39 sub-Saharan African countries

Free trade agreement 16 SADC member states

SACU and EFTA (Iceland, Liechtenstein,Norway and Switzerland)

USA and EU, Norway, Switzerland, Russia,Turkey, USA, Canada, Japan

SACU-Mercosur Preferential trade agreement

Special Economic Zones (SEZs) in South Africa

Source: (map) Department of Trade, Industry and Competition

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POSITIONED TO BENEFIT CONSIDERABLY FROM THE AFCFTAAfrican Continental Free Trade Area will enhance intra-African trade and investment

• TheAfricanContinentalFreeTradeArea(AfCFTA) officiallycommencedtradingundertheagreementon 1January2021.• SouthAfricaratifiedtheAfCFTAagreementin2019,thus positioningitforwideraccesstonewmarket opportunities.• SouthAfricaisanattractivelocationforforeigninvestors requiringaccesstotherestoftheAfricancontinentas theycanleverageon: - SouthAfrica’swell-developedindustrialecosystem anddiversifiedeconomy,particularlyitsestablished manufacturingsectorandvaluechains; - Thecountry’sworld-classphysicalinfrastructureand extensivetransportandlogisticsnetwork(whichis stronglyintegratedwithothersouthernAfrican countries),includingadvancedICTinfrastructure;and - Othercompetitiveadvantages,includingits supportiveoperatingenvironment(favourabletrade regime,sophisticatedandsoundfinancialmarkets, availabilityofkeyproductioninputs).

AfCFTA status as of 9 September 2021

Integrated single trade and investment market

USD 3.5 trillionGross domestic product (GDP) by 2025

52urban cities ≥ 1 million people

~650 million consumersAfrican middle class by 2030

1.5 billionpeople (by 2025)

~90 000 per dayNew users connecting to internet

~USD 2.5 trillionAfrican consumer spending by 2030

Progressive acceleration of regional growth to be supportive of export market development and investment opportunities

Sub-Saharan Africa:Growth in real GDP, fixed investment and import

volumes

• TheAfricancontinentisblessedwithabundantresource endowments,withseveraleconomieslikelytoplaya criticalroleintheglobaltransitiontoagreenerfuture.• Thefast-progressingimplementationoftheAfCFTA agreementwill,overtime,openupamultitudeofnew tradeandinvestmentopportunitiesacrossseveral sectorsandenablingservices.• SouthAfricaisincreasingregionalcooperationefforts withintheAfricancontinent.

Sources: (table) World Bank, African Development Bank, African Union, McKinsey; (chart) IDC, compiled using IMF data

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POSITIONED TO BENEFIT CONSIDERABLY FROM THE AFCFTARegional integration opportunities

• Africaisendowedwithamassiveresourcebase (incl.agricultural,waterandenergyresources,industrial minerals)tosupportclimatechangemitigationefforts, thegreeningoftheglobaleconomyandinclusive development.• Thecontinentishometotheworld’syoungest populationandisurbanisingrapidly.• Africahasmassiveinfrastructureneedsandexhibits hugepotentialingreen/sustainableinfrastructure.• Leap-froggingopportunitiesbroughtaboutbythedigital revolution(incl.infintech,education,health,smart agriculture,etc.).• Regionalintegrationeffortsleadingtodevelopment ofeconomiesofscale,valuechaindevelopmentand improvementsinthebusinessenvironment.

Sectoral distribution of announced FDI greenfield projects in Africa by value

Numerous regional investment opportunities

Sector/industry Value (USD million) 2020 2019Total 28 997 76 637Primary 13812829Manufacturing846832621Services19149 41186Top industries by value in 2020Informationandcommunication 8960 4639Energy 531210228Cokeandrefinedpetroleum 2315 7727Food,beveragesandtobacco 1382 2448Transportationandstorage 1277 5402Automotive 1111 4015

• Around60%ofAfrica’sarablelandisuncultivatedandthecontinenthasabundantwater resourcesforagriculturedevelopment(incl.climatesmarttechnologies,irrigation),potablewater.• Value-addingopportunitiesaboundintheagro-processingsector(incl.thedevelopment ofgloballycompetitiveprocessedfood,beveragesandotherderivedproductsindustries).

• Africaisamajorplayerintheextractionofvariousmineralresources.Itsenviableresource endowmentprovidesnumerousinvestmentopportunitiesinminingandmineralsbeneficiation.• Investorsshouldtargetkeyminingsectorsforglobally-competitivedownstream manufacturingmetalsindustries,mineralexports,aswellastopromoteenergysecurityand supportclimatechangemitigationefforts.Examplesincludecopper,cobalt,graphite,lithium, nickel,tin,etc.

• Largeoffshoreandonshoregasreservediscoveriesin,forexample,MozambiqueandTanzania presentmultipleopportunitiesforenergygenerationandthedevelopmentofupstreamand downstreamrelatedgasresourcesforotherchemicalprocessesandpetrochemicals, greenchemicals,etc.

• Lowindustrialbasesinmostofthecontinent,exceptforafeweconomiessuchasSouth Africa,pointtoawidearrayofinvestmentopportunities.• Developmentofvalue/supplychainsacrossvarioussectors(e.g.petrochemicals, pharmaceuticals,food,beverages,mineralsbeneficiation,fabricatedmetals,woodproducts, cotton-textiles-clothing/householdtextiles,leatherandleatherproducts).

• Significantandrapidlyexpandingsubscriberbases.• Covid-19acceleratedtheuptakeofdigitalservices(incl.e-health,e-learningande-commerce).• Furtherinvestmentopportunitiesinbackbonenetworks,last-mileconnectivity,powersupplyto supportbroaderdigitisation,andinnovationstoensureinclusivity.

• Massivedevelopmentopportunitiesacrosstheinfrastructurespectrum,incl.inputsupply requirementsassociatedwithAfrica’songoinginfrastructureandindustrialdevelopmentdrive.• Ampleopportunitiesinthedevelopmentofphysical,digital,greeninfrastructure(incl.renewable andcleanerenergysources),storage(incl.coldstorage),warehousingfacilities,etc.• TheAfCFTAwillcatalyseregionalcross-borderinfrastructuredevelopment.

• Numerousopportunitiesforconsumer-orientedsectorsdrivenbythepotentialintegratedmarket ofover1.3billionconsumers,ayoungandrapidlyurbanisingpopulation,andincreasingly sophisticatedconsumersegments.

Climate-smart agriculture andagro-processing

Mining and minerals processing/beneficiation

Hydrocarbons,particularly natural gas

Manufacturing

Digital technologies(incl. information and communications technology)

Infrastructure, logistics and energy development

Other consumer goods and services

Source (table): United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2021

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COMMITTED TO A SUSTAINABLE AND INCLUSIVE FUTURE

Prioritising environmental sustainability and inclusive development• Globalclimateandhumanitariancrisesareshifting investorbehaviouranddecision-makingtowards impact-orientedformsofcapitalinvestmentthat considerenvironmental,socialandgovernance(ESG) principles.• SouthAfricaadoptedtheUnitedNation’sSustainable DevelopmentGoals(SDGs)in2015,subsequently aligningthesewithitsNationalDevelopmentPlanVision 2030(theoverarchinglong-termpolicyframework).• SouthAfricaisasignatorytothe2015UNFCCCParis Agreement,adoptedby196countriesthatsupportthe transitiontoalowcarboneconomy.• IndustrialpolicyinSouthAfricaisgearedtosupport sustainableindustrialdevelopment,positioningitasa hubforimpact-orientedcapitalinvestment.

South Africa’s policy framework and developed economic ecosystem provides an ideal environment for impact investors and green economy development

ImpactInvestors’goals:

Socialimpact

Financialreturn oncapital

Range ofasset classes

Impactmeasurement

Industrial Policy Action & EnvironmentalImplementation Plans

Integrated Resource Plan to drive low-carbon energy transition

Green transport strategy

Strong network ofdevelopment financeinstitutions (DFIs)

Non-DFI financial ecosystem: Private equity,asset managers, venture capital funds, crowd funding

Advanced financialinstruments andinfrastructure for riskmanagement

Impact socio-economic / environmental objectives

• Affordablehousing• Health• Employment• Education• Criminaljustice• Accesstofinance• Financialinclusion• Environment• Renewableenergy• Sustainableagricultureandskills development

Impact-driven organisations

• Government• Foundations• Socially-mindedconsumers• Socially-drivencorporateorganisations• Grant-drivennon-profitorganisations (NPOs)• Grant-fundedNPOswithrevenue generatingactivities• For-profitbusinesses

Impact capital distribution channels in South Africa

• Financialinstitutions• Impactinvestmentfunds• Crowdfundingplatforms• Impactinvestmentintermediaries• EnterpriseandSupplierDevelopment Funds

Available forms of financing instruments

•Securedloans•Unsecuredloans•Non-traditionaldebtandequitystructures•Equityfinance•Grants

Sources of impact capital in South Africa

• GovernmentandDFIs• Foundations• Financialinstitutions• Pensionfunds• Corporations• Highnet-worthindividuals• Massretailplatforms

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• Greeneconomydevelopmentisexpectedtohavea significantsocioeconomicimpactandprovides considerableprocurementopportunitiesfor manufacturersandotherkeyinputsuppliers.• RepurposingoptionsarebeingexploredbySouthAfrica’s powerutility(Eskom)foritsfleetofcoalgeneration plantsthatareapproachingtheirend-of-life.Thesecould includetheirconversionfromcoaltorenewables, biomass-to-energyoptions,andbatteryenergystorage.• SouthAfrica’sdeterminedapproachindrivinggreen economydevelopmentoffersattractiveopportunitiesfor globalinvestorsseekingtoallocatecapitalforthe developmentofenvironmentally-responsibleindustries.• Highlevelsofsolarradiation,vaststretchesoflandanda largeendowmentofPGMs(morethan75%ofglobal output),akeycomponentofelectrolysersinhydrogen productionandascatalystsinfuelcells,supportthe developmentofthegreenhydrogenvaluechainin SouthAfrica.• Anexpandingmarketfortheissuanceofgreenbonds providesafinancialde-riskingmechanismthatis expectedtodriveincreasedprivatesectorinvestment andFDIintoSouthAfrica’sgreeneconomy.

COMMITTED TO A SUSTAINABLE AND INCLUSIVE FUTURE

South Africa’s greening trajectory is unlocking numerous development opportunities with attractive investment returns

Some of the investment opportunities

• Renewable energy generation, particularly wind and solar PV• Solar energy technologies and components (solar panels and inputs such as solar glass, aluminium, junction boxes and cabling; solar water geysers; timers, etc.)• Wind turbines and components• Adoption of energy efficiency technologies• Energy storage• Green hydrogen production• Diversion of landfill waste to industry for re-use/ recycling• Recycling (e.g. plastics, paper and packaging, glass, tyres, batteries, e-waste)• Waste beneficiation (e.g. ash, slag, gypsum, biomass)• Waste water treatment• Electric vehicle infrastructure and value chain development, hydrogen fuel cell based systems, greener components• Green buildings related materials and products

• Ajusttransitiontoalow-carbon,climate-resilient,greenereconomyformsanintegralpartofSouthAfrica’sglobal commitments,includingtheParisAgreementandSDGs.

• TheJustTransitionframeworkisalsoreflectedinthecountry’spertinentlegislation,regulations,policiesandstrategies, includingtheIntegratedResourcePlan2019andtheEconomicReconstructionandRecoveryPlan.

Some of the green economydevelopmentopportunities

Large-scaledeploymentofrenewableenergygenerationandenergystorageAdoptionofenergyandwaterefficiencysolutionsGreenhydrogenvaluechaindevelopmentWastere-use/recycling,diversionofwastefromlandfillstoindustrialwasterecyclingBeneficiationofindustrialwasteEnvironmentalrehabilitationandpreservationForestrydevelopmentExpandedretrofittingofpublicandprivatesectorbuildings

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SECTOR PERSPECTIVES AND OUTLINE OF INVESTMENT OPPORTUNITIES

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AGRICULTURE AND AGRO-PROCESSINGSectoral outline

•SouthAfricahasawell-developedagriculture sector.Itcontributed2.8%tooverallGDPin 2020,accountedfor6.3%oftotalexport earningsandemploysalmost820500people.•Thesectorhasawell-developedagriculture segmentwithmorethan40000commercial farmersand300000small-scalefarmers.•Productsincludemaize,wheat,sugarcane,fruits (e.g.apples,citrus,grapes,berries),vegetables, nuts(e.g.groundnuts,pecannuts, macadamia), beef,poultry,mutton,wool,fishandseafood.•Thesectorhasextensivebackwardandlateral linkageswiththemanufacturingandservices sectors,aswellasforwardlinkagesto manufacturingthroughthesupplyofraw materialstovariousprocessingindustries.

Economic importance

Structure

Extensive sectoral linkages

Primary agriculture sector:• Theagro-processingsectorshavegrownrapidly overtheyears,accountingfor3.8%ofSouth Africa’sGDPand5.7%oftotalmerchandise exportearningsin2020.Collectivelythey employapproximately245000people.• Over7000businessesareinvolvedinfood processing,dominatedbylargeenterprises.• Thesesectorsproduceawiderangeof products,fromhighqualitycommoditytypes tohigh-endmarket/nicheproducts.• Thebeveragessub-sectorincorporatesthe productionofjuices,winesanddairyproducts, amongothers.• Agro-processingsectorshaveextensive backwardandlaterallinkageswiththe agriculture,manufacturingandservicessectors.

Agro-processing sector:

• Marketoriented,highlydiversifiedandglobally competitiveexportingcapabilities.• Favourablenaturalresourcesandhigh-qualityproduce.• Diverseclimaticandgeologicalconditions.Climatevaries fromsubtropicaltoMediterranean,permittingamultitude ofproductionopportunities.• Counter-seasonalitytothenorthernhemisphere.• Majorglobalproducerofvariousagriculturalproducts.• Fullyintegratedandelaborateagriculturalvaluechains.

Why invest in South Africa’s agriculture sector

Economic importance

Structure


Export performance reflects increasing global competitiveness of the sector’s primary and manufactured products

Agriculture, forestry and fishing sector exports

Agriculture, forestry & fishing exports: 87 949.8 100%-Citrusfruit,freshordried 27941.6 31.8%-Grapes,freshordried 10550.4 12.0%-Apples,pearsandquinces,fresh 9810.3 11.2%-Maize(corn) 9236.1 10.5%-Nutsexceptcoconut,fresh/driedbrazil&cashew 4588.9 5.2%-Wool,notcardedorcombed 4149.6 4.7%-Otherfruits,fresh 3119.4 3.5%-Avocado,dates,pineapple,etc. 2339.8 2.7%-Stonefruit,fresh(apricot,cherry,plum,etc) 1648.3 1.9%-Seed,fruitandspores,forsowing 1239.7 1.4%-Others 13325.7 15.2%

Value in 2020(ZAR mil)

%of total

Food processing exports: 60 743.5 100%-Solidcane/beetsugar&chemicallypuresucrose 6037.2 9.9%-Fruitandvegetablejuices,notfermented/spirited 4068.9 6.7%-Foodpreparations 3255.2 5.4%-Fruit,edibleplantparts,prepared/preserved 2701.6 4.4%-Animalfeedpreparations 2618.3 4.3%-Cerealgrouts,mealandpellets 2561.6 4.2%-Fish,frozen(whole) 2320.9 3.8%-Fishfillets,fishmeat,minceexceptliver,roe 2007.8 3.3%-Flourofmeat,fishoroffalforanimalfeed 1799.9 3.0%-Maltextract,flour,dairypreparations,cocoa 1455.5 2.4%-Others 31916.5 52.5%

Beverages exports: 18 283.9 100.0%

-Grapewines(includingfortified),grapemust 10073.6 55.1%-Waters,non-alcoholicflavouredbeverages 2108.2 11.5%-Ethylalcohol,undenatured 2043.4 11.2%-Liqueur,spirits&undenaturedethylalcohol 1771.5 9.7%-Beermadefrommalt 989.4 5.4%-Fermentedbeverages(e.g.cider,perry,mead) 923.2 5.0%-Malt 244.5 1.3%-Unsweetenedbeveragewaters,iceandsnow 68.6 0.4%-Vermouthandotherflavouredgrapewine 61.5 0.3%

• Robustbackwardandlaterallinkagestovarious economicsectors.• Processingcapacityforawiderangeofagricultural products.• Efficientexportinfrastructureandlogisticsnetworkto supportexportorientedgrowth.• Industrialcapacitytosupportdevelopmentand deploymentofsustainableandnewgeneration technologiesinagriculture.

Agro-processing sub-sectors’ exports Value in 2020(ZAR mil)

%of total

Sources: (chart) IDC, using Quantec data; (tables) SARS

17

Strategic focus areas to drive long-term growth

• Agriculturalvaluechainsareakeypillaroftheeconomy.Their developmentisagovernmentpolicypriorityandpresentsamyriad ofopportunitiesforinvestors.• Accesstolandforcommercialandsubsistencefarmingwillbe increasedsubstantially,witharound700000haofunderutilisedstate landtobemadeavailableforpublicleasing.• Strategieshavebeenenactedtodriveconsolidatedbuyingand marketlinkagestoreducemarketrisksforproducers.• StrategiesareinplacetoenhanceR&Dandsmarttechnology absorptioninagriculture.

Sectoral master plans to unlock growth

Policy support to agrarian development and transformation

Industrial and trade policies supportive of investment

Reduced supply chain concentration and project risks

• Fruitandvegetablepackagingandcanning,juice processing.• Oilseedproduction,edibleoilprocessing,oilcake.• Processingofsoy-basedproducts.• Grainsorghumproduction,maltindustrydevelopment.• Nutfarming(e.g.macadamia,walnut)andprocessing.• Processingoforganic,vegetarian,dehydratedfoods.• Meatprocessing,includingostrichmeat.• Expansionofdairyvaluechain.• Expansionofbakeryandconfectioneryproduction.• Expansionofaquaculture(abalone,mussels,trout), canningoffreshwaterfish.• Biofuelsdevelopment.• Extractionofhigh-valueadditives,nutraceuticals.


Enhanced value proposition of investment opportunities

• Productionofaromatics,flavourants.• Non-edibleoilprocessing.• Commercial-scaleplantingofindigenousplants, includingflowers.• Productionofmedicinalextracts,incl.cannabis-based.• Cropproductionforfeedstockintobiofuelsprocessing.• Woolandmohairproductionandprocessing.• Productionofartemisininformalariamedicaments.• Flaxproduction.• Forestrydevelopment.• Developmentofsmarttechnologiesinagriculture.• Waterinfrastructureinvestment,wastewatertreatment.

Enhanced agro-processingcompetitiveness

• Investmentopportunitiesinagriculture(horticulture,fieldcropsandlivestock)andfisheries productionandprocessingacrossseveralvaluechains.• Agricultureandagro-processingmasterplansaimtoincreasedomesticconsumptionand export-orientation,improvecompetitiveness,raiseproductionandpromoteinvestmentin thesector.• ComprehensiveLandandAgrarianStrategyfocusesonthedevelopmentofCommodity CorridorsandCommodityProductionSchemesatthedistrictlevel.Agri-parksandFarmer ProductionSupportCentreswillassistfarmersinextractingvaluefromtheirassets.• Reconfiguredindustrialpolicyincentivesforagro-processingwillreduceproject developmentandfundingrisks,boostingthesector’sinvestmentproposition.• Tradepolicytoenhanceaccesstokeyexternalmarketsforproducersinthefieldcrops, horticulturalandlivestockvaluechains,aswellasprotectlocalindustry.• Supportmarketgrowthforsustainableagriculturetechnologysolutionssuchascontrolled environmentproduction(e.g.hydroponics),agri-relatedrenewableenergytechnologies, droneandmobilecommunicationsapplications.• Measurestoreducehighconcentrationlevelsinagriculturalinputssupply,agro-processing andfoodretailtoenhancecompetitivenessandinclusivedevelopment.

AGRICULTURE AND AGRO-PROCESSING

18

Why invest in South Africa’s mining sector

MININGSectoral outline

• Theminingsectorcontributed7.1%toSouthAfrica’sGDP in2020and41.8%oftotalexportearnings,dominatedby platinumexports.Thesectoremploys452,000people.• Theminingsectorishighlydevelopedandhostsnumerous conglomeratesresponsibleforprimaryproduction. Emergingminersdominateexplorationactivityinthesector.• Thesectorhasextensivebackwardandlaterallinkages withthemanufacturingandservicessectors,aswellas forwardlinkagestomanufacturingthroughthesupplyof rawmaterialsintometalfabricationindustries.

Economic importance

Structure


•Highlydevelopedanddiversifiedminingsectorwithmineral resourcebaserankedasoneofthemostvaluableintheworld.•Veryhighleveloftechnicalandproductionexpertiseto supportreturnsoninvestedcapital.•LeaderinglobalsupplychainsofPGMs,manganese,chrome.•Competitivepositioninginglobalproductioncostcurveof severalmajorcommoditygroups.•Strongbackwardandforwardlinkageswithothersectors•Globalleaderindeep-levelmining,mineralrecoveryand technology.

Mining sector on a sustained demand-driven recoveryTrends in mining output for select sub-sectors

Mining growth - resilience in future oriented sub-sectorsMining sector sales (value terms) in 2018 and 2021

Value in 2020(ZAR billion)

Total mining sector exports: 583.4 100%- Platinum Group Metals (PGMs) 175.2 30%- Gold and uranium 108.3 19%- Iron ore 107.2 18%- Coal 60.3 10%- Other mining exports 132.4 23% • Manganese ores, iron ores >20% manganese 40.3 • Chromium ores and concentrates 24.7 • Diamonds, not mounted or set 22.4 • Precious metal ores and concentrates 15.6 • Titanium ores and concentrates 7.5 • Niobium tantalum vanadium zirconium ores 6.1 • Copper ores and concentrates 4.7 • Zinc ores and concentrates 3.2 • Natural fluorine minerals 1.6 • Petroleum oils, oils from bituminous minerals, crude 1.3 • Rest of other mining exports 5.0

Mineral beneficiation exports

Total basic iron and steel exports: 65.9 100%- Ferro-alloys 43.7 66.4%- Rolled stainless steel sheet, width > 600mm 6.6 10.0%- Flat-rolled iron/steel, >600mm, clad, plated/ coated 2.7 4.0%- Pig iron and spiegeleisen in primary forms 2.1 3.2%- Semi-finished products of iron or non-alloy steel 1.3 2.0%- Hot-rolled products, iron/steel, width>600mm, etc. 1.3 1.9%- Iron/steel bar, forged hot-rolled drawn, extruded 1.2 1.8%- Others 7.1 10.7%Total basic non-ferrous metal product exports: 39.6 100%- Unwrought aluminium 16.6 42.0%- Aluminium plates, sheets & strip, thickness> 0.2 mm 5.1 12.9%- Unwrought nickel 4.6 11.7%- Unrefined copper, copper anodes, etc 4.6 11.6%- Refined copper and copper alloys, unwrought 2.7 6.9%- Manganese, articles thereof, waste or scrap 1.0 2.6%- Aluminium tubes and pipes 1.0 2.5%- Others 3.9 9.9%

•Supportiveindustrialexportinfrastructureandpolicy environment.•Structuralcommoditiesbullmarketgloballyhashada beneficialimpactonthesector’sinvestmentproposition.•Subsequently,variousprivateequity,hedgeandinvestment funds,andglobalresourcescompanieshaveinvestedin SA’sminingassets.•SouthAfricahoststhemostdevelopeddownstreammetals fabricationsectorinAfrica,positionedtoleveragedomestic andregionalgrowth.

Mining sector exports % oftotal


% oftotal

Sources: (charts) IDC, using Stats SA data; (tables) SARS

19

MINING


• SouthAfricaisendowedwithoneofthemostvaluablemineral resourcesportfoliointheworld.• Expansionofeconomicactivityacrossminingvaluechainsformsan integralpartofSouthAfrica’sreindustrialisationstrategy.• Strongpolicyemphasisonsupportforinvestmentinexploration activity,expansionofproductioncapacity,competitiveness enhancementsinminingvaluechains,andmineralsbeneficiation.• Enhancedpolicycertaintyandadequateinvestmentprotection mechanismsaimedatreducingrisksforprospectiveinvestorsand existingindustryplayers.• ThediversifiedstructureofSouthAfrica’sminingsector,anestablished mineralsprocessingecosystemandattractivedevelopmentprospects forgreenminerals/metalsvaluechainsconstituteastrongcasefor value-creatinglong-terminvestmentinthesector.

• PGMsbeneficiation,developmentoffuelcellindustry• Increasedironorebeneficiationthroughrevitalisationof downstreammanufacturingcapacity.• Manganesevaluechaindevelopment.• Vanadiumasastrategicinputforenergystorage solutions.• Titaniumvaluechaindevelopment,especiallytitanium dioxide.• Ferrochromeproduction,revitalisingchromevaluechain.• Greensteelinvestment(decarbonisationofSouth Africa’ssteelindustry,whichisthelargestinAfrica).• Revitalisationofmetalsdownstreamcapacityleveraging ongovernmentincentives.


Policy certainty supports investment across diverse mineral resource portfolio

Strong technical mining expertise reduces project development risk

Dominant supply-sideposition across variousmineral value chains


Developed mining sector with strong backward and forward economic linkages

• Diversemineralresourceportfoliopresentsattractiveinvestmentopportunitiesacross preciousmetals,energyminerals,ferrousandnon-ferrousmetalsaswellasotherindustrial minerals,particularlythoseutilisedinthegreenanddigitaleconomies.• Theacceleratingenergytransitiongloballyincludingthedevelopmentofrenewableenergy infrastructureisexpectedtoincreasethedemandforcopper,nickelandaluminium, amongothers.• Thelargeinfrastructuredevelopmentprogrammeplannedforthecomingyearswillraise demandforlocally-produceddownstreammetalproducts.• Industrialpolicysupportmechanismsreduceprivateequitycapitalfinancingrisksfor explorationandnewresourcedevelopmentintheminingsector.• Substantiallyreducedtimeframesforprospecting,environmentalandwateruselicenses willstimulatenewmininginvestment.• SouthAfricahasdevelopedcommercialandtechnicaldevelopmentleadershipinthe applicationofnewgenerationdigitaltechnologiesinminingoperations.• Asaleaderintheworld’splatinumsupplychain,SouthAfricaisideallypositionedto leveragePGMbusinessopportunitiesasthedevelopmentoftheglobalgreenhydrogen economyprogresses.

• Coalashbeneficiation(e.g.productionofcementitious materialsforconstructionindustry;toaddressacidmine drainage.• Carboncaptureandstorage.• Oilandgasdevelopmentopportunities.• Uraniumresourcedevelopmentandbeneficiationto supportglobalnuclearfuelfabrication.• Export-orientedjewelleryfabrication,includingdiamonds, goldandplatinum.• Sustainableminingtechnologyincludingdigitisation, enhanceddataanalyticsandnewgenerationmining equipment.

20

MANUFACTURINGSectoral outline

• SouthAfrica’swell-establishedanddiversified manufacturingsectorcontributed13%tooverallGDP andalmost50%tototalexportearningsin2020.It employsaround1.13millionpeople.• Diversifiedindustrialstructurewithlargeintegrated sub-sectorsincludingfoodprocessing;beverages; chemicals;motorvehicles,partsandaccessories; machineryandequipment;fabricatedmetalproducts; paperandpaperproducts;woodandwoodproducts.• Thesectorhasstronglinkageswithnumerousother sectorsoftheeconomythroughitsprocurementof goodsandservices,aswellaswithend-usemarkets foritsownproducts.

Economic importance

Structure


Total manufacturing exports 691.1 100%

- Motor vehicles, parts & accessories 164.8 23.7% - Basic iron & steel products 65.9 9.5% - Food 60.7 8.7% - Other chemicals & man-made fibres 53.3 7.7% - Machinery & equipment 51.7 7.4% - Basic chemicals 49.6 7.1% - Basic non-ferrous metal products 39.6 5.7% - Coke & refined petroleum products 35.4 5.1% - Other manufacturing 30.5 4.4% - Paper & paper products 18.9 2.7% - Other manufacturing exports 120.7 17.9%

Manufacturing sector exports

• Well-established,diversifiedandgenerally technologicallyadvancedmanufacturingbase-Africa’s mostadvanced.• Variedeconomicperformanceatindustrylevelowingto diversityinproductioncapabilityandcompetitiveness.• Stronglinkageswithothersectorsoftheeconomy,with supplierproximityoftenbeingakeysourceof competitiveness.• InnovationandR&Dcapabilities,alongwithindustrial incentivesaresupportiveofmanufacturinggrowth.

Why invest in South Africa’s manufacturing sector

Food & beverages, machinery & equipment, andautomotive industries have grown strongly …

Real change in GDP: 2020 vs 2000

… sector dominated by food & beverages, chemicals,metals, and transport equipment industries

Sectoral contribution to manufacturing sales in 2020

• Manufacturingsectorisaprincipalbeneficiaryofthe publicsector’slocalisationdrive.• Market-orientedandglobally-competitiveexporting capabilitiesacrossseveralsub-sectors.• Flexibilityandcapacitytoadapttotheglobalenergy transitionwiththedeploymentofsustainableindustrial andautomotiveenergysolutions.• Asanimportantsourceofmanufacturedproductssold inthesouthernAfricanregion,thedomesticsectorwill benefitfromadditionalexportmarketdevelopment opportunitiesundertheAfCFTA.

Relative competitiveness in a no. of export-oriented manufac-turing industries, especially in regional markets

Manufactured exports


% oftotal

Sources: (chart) IDC, using Stats SA and Quantec data; (table) SARS

21

MANUFACTURING

Strategic focus areas to drive long-term growth• ThereindustrialisationofSouthAfrica’seconomyisakeycomponentoftheERRP. Objectivesincludeexpandinganddiversifyingthemanufacturingbase;improving itscompetitivenessanddynamism;increasingitsparticipationinregionaland globalmarkets;reducingconcentrationlevels;andachievingeffectivetransformation.• DisruptionstoglobalsupplychainscausedbyCovid-19relatedlockdownshave highlightedthestrategicimperativeforcompaniesallovertheworldtodiversify theirsourcesofsupply,potentiallybenefittingSouthAfricanmanufacturers.• Asuiteofindustrialpolicymeasuresisunlockinggrowthopportunitiesinpriority industriessuchasautomotive;clothingandtextiles;chemicalsandplastics;steel andmetalsfabrication;gas;greenindustries;thedigitaleconomyandhigh-tech sectors.• Fundingavailabilityfromthebankinganddevelopmentfinancesectorshasbeen instrumentalfortheimplementationoflargeindustrialprojectsinthesector.• Investmentsinportandrelatedinfrastructureaimtoimproveefficiencies,boding wellforthecompetitivenessoflocally-manufacturedproductsinglobalmarkets.

• Fuelcellmanufacturingforavarietyofapplications.• Manufactureofmotorvehicles,partsandcomponents, focusingincreasinglyontheelectricvehiclesegment.• Manufactureoffuelcellminingvehiclesandforklifts.• Machineryandequipment(e.g.mineralsprocessing, materialshandling,construction,refrigerationand power-sectorrelatedequipment,pumpsandvalves).• Railwayequipmentfordomesticandexportmarkets.• Componentsandsub-assembliesforelectronics manufacturing• Manufactureofequipmentandpartsfortherapidly growingwindandsolarenergygenerationindustry, includingstorageequipment.


• Greenhydrogenproduction.• Partsandcomponentsfortheaerospaceanddefence industries• Medicaldevicesandtelemedicalinstrumentation.• Pharmaceuticalproductsandspecialitychemicals (e.g.biochemicals).• Fluorsparbeneficiationandotherchemicalsvaluechain developmentopportunities.• Advancedmanufacturingopportunities.• Developmentofhigh-endmohairvaluechain.

Industrial financingand incentives toboost investment

Product designationsreduce market offtake risk

Regional integrationpresents majoropportunities


Sectoral master plansto unlock growth ofpriority sectors

• MasterplansarebeingimplementedintheAutomotive;Clothing,Textiles,Leatherand Footwear;aswellastheSteelandMetalFabricationindustriesasmechanismstoraise investmentinproductioncapacity,driveinnovation,improveproductivityand competitiveness,increaselocalconsumptionandexports,ensuresectoraltransformation.• Industrialfinancingsupportincludinggovernmentschemes,developmentfinanceandtax incentives,alongsidespatialdevelopmentinitiativessuchasSEZscontributetoward reducingprojectdevelopmentrisksandraisingreturnsoninvestment.• Thepublicsector’sproductdesignationprogrammereducesmarketofftakerisksfor investmentsinproductioncapacityintargetedindustries.Awidearrayofproducts designatedforlocalprocurementnowincludeplasticpipes,bulkmaterialshandling,lead acidbatteriesandMVswitchgear,solarpanels,windtowersand,amongothers,cement.• Industrialpolicyisparticularlytargetingdomesticprocurementofinputslinkedtothelarge renewableenergyprogramme,withmajorbenefitsformanufacturersthathavebeen investingheavilyinneworexistingproductioncapacitytosupplysuchproducts.• 37.4%ofexportsofmanufacturedgoodsaredestinedforotherAfricancountries. TheAfCFTA’simplementationwillleadtofurtherexportmarketdevelopmentacrossthe continent,supportthedevelopmentofregionalvaluechainsandSouthAfrica’sintegration therein.

22

SERVICES Sectoral outline

• SouthAfrica’swell-developedservicessectorplaysacrucial roleintheeconomy.Itisalsothelargestbroadsectorofthe economy,accountingfor76%oftotalGDPin2020and employing9.3million(79.4%oftotalformalemployment).• Thedegreeofconcentrationvarieswidelyacrossitsvarious sub-sectors.Thebankingindustry,forexample,isdominated byfivelargebanks,whilethebusinessservicessub-sectoris quitefragmented.Retailandwholesaletradeisdominatedby largecompaniesoperatingalongsideSMEs.• Theservicessectoriscentraltothefunctioningoftheeconomy. Ithasextensivebackward,forwardandlaterallinkageswitha multitudeofinputsuppliersandproducers,aswellasend-use consumermarkets.

Economic importance


• Welldevelopedanddiversesub-sectorsprovide attractiveinvestmentopportunitiessuchasinfinancial services,logisticsanddistribution,business services,etc.• Severalstronglyperformingsub-sectorsovertheyears.• Varioussegmentshavestronglinkagesintoregionaland otherglobalmarkets.• SouthAfricaissub-SaharanAfrica’slargestexporterof commercialservices.

Why invest in South Africa’s services sector

Robust growth across basically all services sub-sectorsover the years …

Real GDP trends

… wholesale & retail, business services, transport &communications, and financial services are the largest

Sub-sectoral contributions to services sector GDP in 2020

Strong export performance pre-Covid-19, with a robust recovery anticipated …

Real trend in export of services

• Generallycompetitivecoststructuresrelativetoglobal benchmarks.• SouthAfricaisaglobalhubforBusinessProcess Outsourcing(BPO)services,withseveralmultinational conglomerateshavinginvestedinthecountrytotapinto itsskilledandcompetitivelabourforce.• Certainsegments,suchasBPOaswellasfilmand televisionproduction,drawsignificantpublicsector support,includingincentives.

Structure

… services sector’s share of South Africa’s GDP has risenover time, underscoring their dominant role in the economy

Services sector contribution to GDP

Sources: (charts) IDC, using Stats SA and Quantec data

23

SERVICESInformation and Communications Technology (ICT)

ICT sector income dynamics

• Telecommunicationservicesrecordedsturdyrevenuegenerationthroughoutthe Covid-19pandemic.In2020,revenueincreasedby3.6%toZAR201.3billion,driven bymobileservicesrevenue(+7.8%).• Broadcastingservicesrevenuedeclinedby6.6%toZAR35.8billionin2020,affected mostlybydecliningsubscriptionandsponsorshiprevenuesdespitetheincrease (+7.8%)inpay-TVsubscribernumbers.Therevenueofthepostalservicessegment increasedby3.6%toZAR5.9billion2020,drivenbyimprovedefficiencies.

ICT sector development highlights in 2020 • Thefixed-linesegmentofthetelecommunicationsindustryisdominatedbyTelkom, whilethemobilesegmentisledbyVodacomandMTN(over70%combinedmarket share),withCellCandnewcomersTelkomMobileandRainassmallercompetitors.• Telecommunicationsinvestmentfellby6%in2020,thefirstyearofthepandemic, butremainselevatedandlargelydirectedatexpandingnetworkcoverage,raising speedandimprovingqualityforenhancedfirmcompetitivenessinthemarket.• Nationalpopulationcoveragefor3Gand4G/LTEincreasedto99.8%and96.4% respectivelyin2020,while5Gcoveragestoodat0.7%.Broadbandaccess continuestoimproveduetoinvestmentsinsubmarineandterrestrialfibre-optic networks,whichhaveincreasedcapacityandcoverage.• Policyreform,particularlytheimminentincreaseinhighdemandspectrumallocations, isexpectedtohaveahighlybeneficialimpactonfutureinvestmentinthesector.

• Spectrumlicensingisimminent,openingupinvestment opportunitiesinthedigitalandtelecommunications industries.• Investmentinadvancedtelecommunicationapplications: InternetofThingsapplicationssuchastelematicsand smartdevices;inter-devicecommunicationstechnology.• Bigdatatoolsforreportingandanalytics.• BusinessfranchisingopportunitiesinVoiceoverInternet Protocolsolutions.• Datacentres.• Opportunitiesforconsolidationorinvestmentinfibre internetserviceproviders.



Conducive regulatoryenvironment andstrategic direction

Opportunities forexpanding operationsinto the continent

Digital technologyofferings

• ICASA,theregulatoryauthority,isintheprocessofauctioninghighdemandspectrum followingthepolicydirectivefromtheMinisterofTelecommunicationsandDigital TechnologiesandthetemporaryallocationwhichwillexpireinNovember2021.• Governmenthascreatedafavourableenvironmentforinvestmentininternetinfrastructure andcontinuestoestablishregulations(digitalmigration,ProtectionofPersonalInformation Act,SpectrumAuction,CloudPolicyDevelopment)tosupportthesector’sgrowth.• TheICTandDigitalEconomyMasterplansetsoutthekeyobjectives,enablersand ambitiousactionplanstorealisethenumerousopportunitiesthatSouthAfricacould potentiallyrealiseinthedigitalage.• SouthAfricancompaniesandlocally-basedsubsidiariesofinternationalcompaniesare supplyingmostofthenewfixedandwirelesstelecommunicationsnetworksestablished acrossthecontinentinrecentyears.

• Connectedlivingopportunitiesarisingfromtheroll-out offibreandcheaperdatacosts.• Widespreadinternetadoptionprovidessignificant opportunitiesfore-commercewebsitesonmobiledevices.• e-servicesacrossindustries(e.g.technology/applications foregovernmentande-health).• Developmentofsecurityproducts.• Cloudcomputingopportunitiesduetoimproved bandwidthavailability,securityandloweredcostof broadband,aswellasadditionalinternetproviders competinginthemarket.• FrontierICTtechnologyskillsdevelopment.

24

SERVICESFinance and insurance services

• SouthAfricahasawell-developedfinancialecosystem comparableto,andinsomecasessurpassing,thoseofcertain advancedeconomies.• Thecountry’sworld-classfinancialservicessectorwithglobally integrateddeepcapitalmarketshaspropelledeconomic developmentovertheyears.• ThesectorisoneoffastestgrowinginSouthAfrica,providing allformsoffinancialintermediationincludingcommercial andretailbanking,investmentassetmanagement,insurance andpensionfundingmanagementactivities.• ThemajorbanksareStandardBank,AbsaGroup,FirstRand, NedbankandCapitec,someofwhichprovidecommercial,retail andinvestmentbankingservicesthroughoutAfrica.• ThecountryishosttoAfrica’slargestfinancialexchange-the JohannesburgStockExchange–whichisrankedamongthe world’stop20stockexchangesbymarketcapitalisationand offersinvestorsanefficientplatformforcapitalraising. AlternativeexchangeshavebeenlaunchedsuchasA2X.

• Stronggrowthopportunitiesforprovisionoffinancial servicestothelowerendsofthedomesticconsumer market,underservicedbyaconcentrateddomestic bankingindustrystructure.• Privateequityinvestmentopportunitiestoleverage domesticindustrialdevelopmentopportunities.• Expandingmiddleclassprovidesgrowthopportunities forassetmanagementservices.


• Insuranceservicesgrowthopportunitiesfromrising non-life.• Fintechdevelopmentopportunitiesinbothbanking andnon-bankingsegmentsinthesector,e.g. insuranceinnovationssuchaspay-per-useand insurancecombinedwithconsumerfinancing solutions.• Technologicalsolutionsforspecialiseddata managementservices.


Significant domestic& regional marketgrowth opportunities

Sound regulatoryenvironment

Highly developedbanking sector

• Well-functioningandstronglyregulatedfinancialservicesindustrywithastrongbanking sectorthatofferscommercial,retailandinvestmentbankingservicesthroughout thecontinent.• Proliferationoftechnologicalinnovationsandfintechofferssignificantinvestmentgrowth opportunitiesfortheprovisionofvalue-addingfinancialservicestomainstreamaswellas underservicedsegmentsofthepopulationbothdomesticallyaswellasinothercontinental markets.• SouthAfrica’sinsuranceindustryaccountsforapproximately80%oftotaldirectinsurance premiumincomegeneratedontheAfricancontinent.• Strong,credibleregulatorysystemcomprisingthecentralbank(SouthAfricanReserve Bank)andFinancialServicesBoard(FSB)providingindependentregulatoryoversightover thebankingandnon-bankingfinancialservicessectorsrespectively.

25

SERVICES

Business services, including Business Process Outsourcing (BPO)• SouthAfricahasahighlydiversebusinessandprofessional servicessector,amongthelargestintheeconomy.• Thecountryisendowedwithstrongprofessionalservices capabilitiesincludinglegal,accounting,engineeringand architecturalservices;realestateactivities;rentingof machinery,equipment,personalandhouseholdgoods; BPO;computerandITservices;advertising;and,among others,businessconsultingservices.• SouthAfricahasamaturemarketforBPOservicesthatis supportedbyworld-classtelecommunications,financial andlegalinfrastructure.BPOservicesareconcentrated inthefinancialservicesindustry,telecommunications andICT.• ArobustbusinessservicesecosystemhasseenSouth Africadevelopasoneoftheworld’smajorinvestment hubsforBPO.Thishasenhancedoverallbusiness processesandproductivityfornumerousmultinational corporations.

• Establishmentofback-officehubsformultinational corporations.• Back-officeprocessingfacilities.• Establishmentofcallcentres.• Provisionofsharedcorporateservices.• Knowledgeprocessoutsourcing(technicalandlegal).• Enterpriserisk,fleetandassetmanagementsolutions.• Engineeringandothertechnicalservicestoleverage thelargepublicinfrastructuredevelopmentprogramme currentlyunderway.



Domestic and globaleconomic recovery

Rising continentalbusiness servicesdemand

Structural trendstowardsoutsourcing

• SouthAfrica’shighlydevelopedbusinessservicessectoriswellpositionedtobenefitfrom thestructuraltrend,bothdomesticallyandglobally,towardsoutsourcingofnon-core businessactivities.• Thepost-pandemiceconomicrecoverylocallyandglobally,thereformattingofindustries towardsagreaterremoteworkingenvironmentorientation,andtheproliferationofnew generationtechnologiesprovideslucrativebusinessservicesinvestmentopportunities.• SouthAfrica’sinfrastructureintensiveEconomicReconstructionandRecoveryPlanwill catalysedomesticdemandforbusinessservices.• SouthAfrica’scost-effectiveBPOservices,supportedbyworld-classtelecommunications, financialandlegalinfrastructure,isattractinggrowingdemandinexternalmarkets, particularlyinotherhigh-growthAfricancountries.• Fromaglobalperspective,SouthAfricaisregardedasoneofthemostattractive countriesforoffshoringservicesprovision,presentingamultitudeofopportunitiessuchas back-officehubs;knowledgeprocessoutsourcing;and,amongothers,legalprocess outsourcing.• InvestmentintotheBPOindustrybenefitsfromstrategicgovernmentalsupportviathe BusinessProcessServicesincentiveschemewhichcontributestoloweringinvestment costsforforeigninvestors.

Supportiveecosystem

Governmentinvestment incentives

Factors driving SA’s attractiveness as a BPOinvestment destination

• Evolutionoftheindustryfromvoice-driventowards omni-channeldeliveryofserviceshasexpanded investmentprospects.• AnalyticssolutionsservicesenabledbySouth Africa’sskillscapability,includingrootcause analysis,predictiveanalytics,knowledgeprocess outsourcinganddigitalinvestmentplatforms.

26

INFRASTRUCTURE


• SouthAfrica’seconomicrecovery,renewalandexpansionmomentumis beingcatalysedbyamassiveroll-outofinvestmentacrosstheenergy, water,road,rail,ports,telecommunication,digital,aswellascommunity andsocialinfrastructuresegments.• Aninfrastructuredevelopmentpipelinecomprising276projects, collectivelyvaluedatanestimatedZAR2.3trillion,wasunveiledatthe inauguralSustainableInfrastructureDevelopmentSymposiumin2020. Thesearebeingmarketedtoinvestorsinphases.• Followingthereleasetomarketof62projectsin2020,55projectsvalued atZAR595billionhaverecentlybeenreleasedbygovernmenttothe marketinasecondphase,presentingsignificantopportunities forinvestors.

• Programmetoexpand,rehabilitateandmaintainthenational,ruraland municipalroadnetworksprovidesimmediateopportunitiesfor constructioncompanies.• Waterdevelopmentandirrigationprojects(e.g.phase2oftheLesotho Highlandsproject,VaalRiversystem)approvedacrossall9provinces provideinvestmentopportunitiesfortheprivatesector.• Sustainabletransportfinancingstrategywillunlockdevelopmentand state-backedfundingopportunitiesfordomesticroadandrail constructionandmaintenance.• Opportunitiesintherailnetwork’smodernisationandexpansion.• Investmentopportunitiesincatalyticinfrastructureprojectssuchas provincialdevelopmentcorridors,socialinfrastructure, telecommunicationsandpowergeneration.• High-demandspectrumallocations,expectedtobeconcludedby March2022,willacceleratedigitalmigration,unlockmajorefficiency gainsfornetworkoperatorsandopenupinvestmentopportunitiesfor infrastructureupgradingandservicesintheICTsector.

Some of the investment / participation opportunities


Fit-for-purposeprocurement frameworkfor infrastructure projects

Revised regulatoryframework for PPPs tocrowd-in private sector

Roll-out of “shovel-ready”sustainable infrastructure projects

• 62strategicinfrastructureprojects,includingvariouswaterinfrastructuredevelopments, fishfarmingandasatellitehub,werefast-trackedtomarketbythegovernmentin2020, attractingprivatefundingcommitmentsofZAR340billion.• Anadditionalpipelineof55projectswassubsequentlyreleasedtomarketwithattractive opportunitiesforpublic-privatepartnerships(PPPs).• AroundZAR1trillioninnewinfrastructureinvestmentisexpectedtobeleveragedbythe ZAR100billioninblendedfinancethatSouthAfrica’sInfrastructureFundwillputforward overthenext10years.Privatesectorparticipationwillsupplementthecapacitationdrive currentlyunderwayatInfrastructureSouthAfricathroughprojectpreparation, implementationandfinancialstructuringcapabilities.• Thedevelopmentofafit-for-purposeprocurementframeworkforinfrastructureprojects andanappropriateregulatoryframeworkforPPPswillprovideamoreconducive environmentforinfrastructureinvestmentandprivatesectorinvolvement,significantly reducingprojectfinancerisksforinvestors.• Sovereignfundingguaranteesalongsideagreedpartnershipswithcommercialbanksand developmentfinanceinstitutionsonstrategicinfrastructureprojectssignificantlyreduce developmentrisksforinvestors.

Localisation drive toenhance economic impactof infrastructure projects

South Africa’s infrastructuredevelopment model

National Infrastructure Plan 2045

• StrategicIntegratedProjects• Infrastructureplanningand coordinationfornationalinfrastructure development

A single point of entry investors into infrastructure development

Maintains a visible, bankablepipeline of projects

Monitoring and data managementIn

frast

ruct

ure

Sout

hAf

rica

(ISA)

27

ENERGY


• Ajusttransitiontoalow-carboneconomyforms anintegralpartofSouthAfrica’sglobal commitmentstoaddressclimatechange.• Thetransitionisimperativeasitwilldrive long-termsustainability,resilienceand competitiveness.• TheEconomicReconstructionandRecovery Plancallsfora“newenergyparadigm”to supporttheeconomy’slong-termgrowthand developmentpotential.• TheIntegratedResourcePlan(IRP2019) outlinesSouthAfrica’sstrategicplanand roadmapforfutureelectricitygeneration capacityaswellasdemand.• TheIRP2019emphasisestheurgencyof diversifyingthecountry’senergybasket, focusingonthedevelopmentofnew renewableenergygenerationcapacity.• SouthAfrica’slargerenewableenergyproject developmentcapabilitieshavegarnered significantmomentuminrecentyears.• Renewableelectricitygenerationcapacityis settoincreasesubstantiallytowards31.2GW,or37.7%ofoverallinstalledcapacity(83GW)by2030,compared to11.2%in2018.• Apolicyframeworkthatleveragesprivatesectorcapital,operationalparticipationandcapitalmarketdepthhas acceleratedandde-riskedrenewableenergyrelatedcapitalinvestments.• Thecountryhasdevelopedamulti-billionrandpipelineofrenewableenergyprojects,mainlybasedonwindandsolar technologies,aswellasenergystoragesolutions.

Blessed with high solar irradiation, South Africa is becoming a leading generator of solar energy

Per capita electricity generation from solar power across the world in 2020

South Africa’s renewable electricity generation capacity is set to increase substantially

IRP 2019 planned roll-out of renewable electricity generation by source and energy storage

Sources: (map) Our World in Data based on BP Statistical Review of World Energy and Ember, OurWorldinData.org/energy; (chart) IDC, using IRP 2019 data.

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ENERGY

Energy transition: Regulatory reforms unlock lucrative investment opportunities

• EffortsareunderwaytounlockefficienciesatEskom, thestatepowerutility,toenablesufficient,reliableand affordableenergytosupporttheeconomy’slong-term growthtrajectory.• Apolicyframeworktoenableself-generationand unbundleEskomwillsignificantlyenhanceindustrial capacityandcompetitivenesswithintheenergyvalue chainaswellasrelatedindustrialsectors.• Thecrowding-inofprivatesectorcapitalandits operationalparticipationintheenergysectorare indispensable,especiallyinaconstrainedfiscal environment.

Prioritising expandedgeneration capacity

Attracting private sectorcapital and operationalparticipation

IRP 2019 provides policyframework for additionalenergy generation capacity

• IRP2019implementationwillprovidesubstantialopportunitiesforprivatesector participationinthelarge-scaleroll-outofrenewableenergygenerationcapacity, particularlywind-andsolar-powered.• 11318MWofelectricitycapacityhasalreadybeenpromulgated,comprisingof renewableenergy,gas,storageandcoaltechnologies.Bidwindow5ofthe RenewableEnergyIndependentPowerProducerProcurementprogrammewaslaunched inMarch2021,aimingtoprocure1600MWofonshorewindand1000MWofsolarPV.• Theenergyinfrastructureroll-outwillunlockawiderangeofgreeneconomysupply chaininvestmentopportunities.• Energypolicyreformshaveincreasedthegenerationlicenceexemptionlimitfor self-generationprojectsfrom1MWpreviouslyto100MW.Thiswillreducetheenergy supplyriskforinvestmentprojects,enhanceindustrialcapacityandcompetitiveness.• Majoropportunitiesforprivatesectorparticipationarelikelytoemergefromthe unbundlingofEskom,thepowerutility,asoutlinedintheEskomRoadmap.• Investmentopportunitiesareexpectedtoariseinefficientpowertransmissionand distribution,intherepurposingEskom’sfleetofcoalgenerationplantsthatare approachingtheirend-of-life,aswellasinservicessuppliedtoEskomforits enhancedmaintenanceprogramme.• OperationalstabilisationofEskomwillsignificantlyreduceenergyprojectfinance risksandboostinvestorconfidence.• Theconclusionoftheframeworkforthegovernanceofthegas-to-powerindustryand theconstructionofliquidgasterminalspresentattractiveinvestmentopportunities.

Opportunities associated with Eskom’s unbundling


Governance framework for gas-to-power projects

• SouthAfrica’sgrowingenergyrequirementsprovidelucrativeinvestmentopportunitiesacrossnumerousenergy valuechains.Additionalelectricitygenerationcapacityfrom2021to2030bytechnology:

-Wind:15218MW -Grid-scaleelectricitystorage: 2088MW -SolarPV:6700MW -Small-scaleembeddedgenerationforownuse:4000MW -Gas/diesel:3000MW

• Self-generationenergyprojectsupto100MW.• OpportunitiesassociatedwithEskom’sunbundlingandrepurposingofcoalpowerplantsreachingtheirend-of-life.


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TOURISM


• SouthAfrica’stourismoffer,includingitsscenicbeautyand diversity,sunnyclimate,wildlifeandculturalaspects,among manyothers,constitutesastronginvestmentproposition.• Thecountryisthelargesttouristdestinationinthesub-Saharan region,havingwelcomedmorethan10millioninternational touristarrivalsannuallyovertheperiod2016-2019.• SouthAfrica’stourismsectorhasdevelopedintooneofthe principalcontributorstotheeconomyandisamajorprovider ofemploymentopportunities.• Tourismhasextensivelinkagestoseveralothersectors, benefittingfromthesupplyofgoodsandservicesbya multitudeoflocalproducersandserviceproviders.• Thetourismsectorhasbeenoneofthemostdetrimentally affectedbytheglobalCovid-19pandemicandislikelyto continueexperiencingdifficultconditionsintheshort-term.• ImprovingCovid-19vaccinationratesshouldleadtoarecovery indomestichouseholdandbusinesstravel,andtoa progressivenormalisationofforeigntouristinflows.• Tourismrecoveryandgrowthisoneofthepriorityinterventions oftheEconomicReconstructionandRecoveryPlan.ASector RecoveryPlanisinplacewithstrategicobjectivesaimedat reignitingglobalanddomesticdemand,rejuvenatingcapacity andstrengtheningtheenablingenvironmentforthesector.

Measures to attractinternational touristsand facilitate their entry

Attracting private sectorcapital and operationalparticipation

Policy framework tosupport tourismdevelopment

• Amarketentryfacilitationprogrammetosupportinvestmentinthesectorwillbea catalystforrenewedgrowth,developmentandrecoveryofthetourismindustry.• TheNationalTourismSectorStrategyaimstodrivedomesticandinternationaltourist marketgrowth,alsolinkingtourismmarketingplanstothesector’sbroader developmentobjectives.• Governmentaldrivetofacilitatere-entryintointernationaltourismmarketsthroughthe roll-outofanautomatedandefficiente-visasystemforlow-risktravellers.• Visawaivers,currentlyinvolving82countries,tobeextendedtocountriesexhibiting sourcemarketdevelopmentpotential.• AcceleratedimplementationoftheTourismEquityFundaimedatsupportingstrategic investmentsthatwillcontributetothesector’stransformation.TheWomeninTourism Programmesupportsthedevelopmentandempowermentofwomeninthetourismsector.• Policysupportdrivingthedevelopmentofawiderangeofhighgrowthsegmentssuch assportstourism,winetourismandmedicaltourism,amongothers.

Levers to enable the recovery and growth of South Africa’s tourism industry


• Wine tourism• Medical tourism• Theme parks• Investment in world heritage sites

• Cultural tourism• Eco-tourism• Adventure tourism• Sports tourism

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CONCLUDING REMARKS

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South Africa: Investment opportunities abound for faster, sustainable and inclusive growth

• SouthAfricahasthemostdeveloped, diversified, technologically advanced and industrially integratedeconomyontheAfricancontinent.

• Thecountryremainsoneofthepreferred investment destinationsinAfricaand isalsoanimportantgatewayformarketsandotherbusinessopportunities throughoutthecontinent.TheAfricanContinentalFreeTradeAreawillopenup numerousopportunitiesforthedevelopmentofexportmarkets,national industrialbasesandregionalvaluechains.

• TheSouthAfricaneconomyhasbecomeincreasinglydiversifiedovertheyears, therebyreducingitssectoralconcentrationrisks,particularlyinmining.Thishas unlockedadiverse range of high-yield investmentopportunities,predominantly butnotexclusivelyinsectorswithhigh export propensities.

• Thesuccessofmanydomesticindustriesinexportmarketsisindicativeof inherent global competitiveness.

• Theeconomyboastsanextensiveandmodern infrastructure network,whichis beingexpandedfurtherasalargeinvestmentprogrammeisrolledoutbythe publicsectorincollaborationwiththeprivatesector.Togetherwithvarious otherformsofindustrialsupportfromtheSouthAfricangovernmentandother publicsectorinstitutions,thisprovidesanattractivepullfactorforinvestors.

• TheSouthAfricaneconomyhasthepotentialtoachieveahighergrowth trajectorythroughtheunlockingofcompetitiveadvantagesinkeysectorsofthe economyaswellasimplementation of institutional and governance reforms tosupportasustainedrecoveryinbusinessandinvestorconfidence.

•ConfidenceintheSouthAfricangovernment’sabilitytoaddressstructural impediments,includingtheachievementofgreaterpolicycoherence, consistencyandcertainty,aswellasitsfocusonentrenching a business-friendly and investment-supportive environment,willattractinvestor interestandincreasecapitalspending,frombothdomesticandforeignsources, inthedomesticeconomy.

• Thesedevelopments,alongsideananticipatedrecoveryinglobalgrowthoverthe medium-term,augurwellforSouthAfrica’svery open economy,withsignificant catalyticramificationsforlong-terminvestmentprospectsacrossawidevariety ofsectors.

• Asanintegralpartofitsglobalcommitmentstoaddressclimatechange,South Africahasembarkedonajust transition to a low-carbon, climate-resilient and greener economy.

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FORFURTHERINFORMATIONANDOTHERFORMSOFASSISTANCE,KINDLYCONTACTINVESTSA,SPECIFICALLY:

MRYUNUSHOOSEN–HEAD:[email protected]:+27(0)123941032

[email protected]:+27(0)123941959

www.investsa.gov.za

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