Investment drive: R1 trillion and counting. So why do we feel worse off?

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Sarah Smit | President Cyril Ramaphosa is set to more than achieve his “audacious” commitment to raise R1.2 trillion of investments in five years.

, put it during a business breakfast last week — of what appears to have been a successful investment drive. Why then, as the South Africa’s economy limps on, does Ramaphosa’s attempt to claw back capital formation feel like anything but?

In his opening address at the first conference in 2018, Ramaphosa said the ambition to raise at least R1.2 trillion came from an understanding that “no meaningful growth and no significant job creation would be possible without a massive surge in productive investment in the economy”. think tank noted that adding that amount of investment to the economy would go a long way towards inspiring an economic turnaround.

The finer details of the R1.1 trillion investment pledges gives a far better picture of their current effect on the economy. This means the majority of the investments pledged through the drive are still in the pipeline, which makes sense if you consider the still slow pace of gross fixed capital formation growth.

Similar conditions caused investment to contract again, although to a lesser extent, in 2019. The year that followed — the pandemic year — marked the sharpest decline in gross fixed capital formation in at least two decades. Together, Ramaphosa’s first term saw three consecutive contractions in investment, before picking up in 2021 and 2022, when capital formation grew 4.7%.

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شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.

Lies, lies & more lies!

Maybe via betway

What will be your cost of borrowing vs expected ROI? CyrilRamaphosa We can’t continue to borrow and sink money into black holes. jsteenhuisen Julius_S_Malema HermanMashaba TMFoundation_ IFP_National

Why does he think he'll still be president after 2024?

Lol

Why? SAns don’t see any of it. Unless it’s all for more grants

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