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R900 Billion in Investment Commitments: Cosatu Welcomes Summit But Warns of Challenges
President Cyril Ramaphosa hosted the 7th annual Investment Summit this past week, bringing together government, business, labour, and other key role players to ramp up efforts to mobilise badly needed investments to stimulate economic growth.
The Congress of South African Trade Unions (Cosatu) is encouraged by the nearly R900 billion in investment commitments secured by government at the Investment Conferencea marked increase over previous pledges.
The Context
Cosatu president Zingiswa Losi said: “When we have an economy that has been stuck at 1% growth for more than a decade, unemployment at stubbornly high levels of 41.1% and entrenched poverty and inequality, then the answer is not that we need such events, but that we need to do more to ramp up investments.”
The Investment Summit took place at a time when South Africa’s reputation has been systematically attacked with a flood of fake news and wild conspiracy theories.
“These pledges by domestic and foreign business leaders and investment funds are a bold and welcome vote of confidence by investors in South Africa’s future.”
The Challenges
Losi warned that South Africa’s already tepid 1.4% growth projection for 2026 will face severe strain with devastating fuel price increases, notwithstanding government’s temporary R3 a litre cushion.
“Key to stimulating inclusive economic growth and reaching the 5% target necessary to see our dangerously high unemployment rate fall is to tackle the very real deterrents to investment.”
The Priorities
Cosatu outlined several urgent priorities:
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Intensify the investment campaign as the economy braces for severe global economic turmoil due to the war in the Middle East
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Boost strategic and jobs-intensive manufacturing, mining and agricultural sectors
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Expand and diversify trade opportunities, particularly with Africa
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Engage pension and investment funds to increase their investments in domestic industrial sectors
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Overcome unacceptably high levels of crime and corruption
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Rebuild Eskom, Transnet, Metro Rail and other SOEs to full capacity
The Trade Gap
Losi expressed concern about the absence of skilled trade attaches across South Africa’s diplomatic missions.
“Every South African diplomatic mission should have skilled attaches well prepared to promote trade, investment, tourism and transport. The absence of skilled trade attaches across our diplomatic missions is deeply concerning. It robs South Africa of potential trade and investment opportunities.”
The Commitment
“Cosatu, for its part, will continue to work closely with government and business to accelerate these efforts at Nedlac, in the sectoral master plans and in bargaining councils.”
The Bottom Line
R900 billion in pledges is a vote of confidence. But with 41% unemployment and 1% growth, it’s not enough.
Cosatu says: accelerate. Prioritise. Diversify. Rebuild. And tackle crime.
The summit is over. The work has just begun.
{Source: IOL}
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