South Africa increases efforts to attract foreign investment

Recently, the 6th South African Investment Conference was held in Johannesburg, where 81 investment projects were reached, involving a total amount of 889.8 billion rand (1 yuan is about 2.46 rand), the highest in previous conferences. South African President Ramaphosa announced the launch of the second round of the Presidential Investment Mobilization Plan at the meeting, setting a goal of achieving an additional 2 trillion rand investment from 2026 to 2030. He stated that the South African economy is transitioning from a recovery phase to a growth phase, and it is necessary to promote the conversion of investment commitments into actual projects.

Since the first South African Investment Conference was held in 2018, South Africa has continued to promote the introduction of foreign investment and assist in economic structural adjustment. According to South African government data, during the implementation of the first round of the Presidential Investment Mobilization Plan from 2018 to 2023, South Africa has received approximately 1.5 trillion rand in investment commitments, of which over 600 billion rand has already been invested. The German BMW Group is building a production base in Pretoria, South Africa, completing electrification upgrades and carrying out electric vehicle production; Canadian mining company Ivanhoe Mines has invested in platinum group metal mineral development projects in Limpopo Province, South Africa, driving local resource development and employment. The implementation of such key projects has strengthened South Africa's industrial foundation and elevated the country's position in the global industrial chain.

In recent years, South Africa has continued to enhance its attractiveness to international investors by improving infrastructure conditions and increasing business convenience. The insufficient power supply was once an important factor restricting the development of South Africa's industry. In 2022, the South African government released the "Energy Action Plan" to promote the reform of the power industry, lift restrictions on private sector participation in power production, and accelerate the construction of renewable energy projects. With the gradual easing of the tight power supply situation, the stability of enterprise production and operation has been significantly improved. In the field of transportation and logistics, South Africa is promoting the opening of railway operations to the private sector, improving port operation efficiency, and leveraging financing support from institutions such as the African Development Bank to promote the transformation and upgrading of logistics enterprises and alleviate transportation constraints.

In terms of optimizing the business environment, South Africa has simplified visa processing, business registration, administrative approval and other processes to improve investment efficiency. At the level of visa system reform, South Africa has implemented the Trusted Employer Program, which provides pre certification for eligible companies, simplifies visa application procedures for foreign employees, shortens approval cycles, and facilitates the introduction of professional talents and investment activities for multinational enterprises. According to the South African investment promotion agency "Invest in South Africa", the enterprise registration process has been reduced from 40 days to one day online through digital process optimization, effectively reducing the institutional transaction costs of enterprise operation. In addition, the South African government plans to promote the implementation of the Comprehensive Rapid Approval Act, establish an integrated rapid approval mechanism, set up special approval channels for key areas such as energy and infrastructure projects, and shorten project approval cycles.

In recent years, Chinese companies have continuously expanded their investment areas in South Africa, extending from traditional resource development to manufacturing, new energy, automobiles, and other fields. At the recent China South Africa Economic and Trade Cooperation Forum, companies from the two countries conducted docking and negotiations on cooperation in agriculture, manufacturing, energy and mineral resources, finance, logistics and other fields. Parks Tao, the Minister of Trade, Industry and Competition of South Africa, stated that Chinese investment in South Africa exhibits characteristics of industrial synergy and localized development, which is in line with South Africa's development direction of promoting industrialization and increasing employment.