President Cyril Ramaphosa says South Africa's economy is showing clear signs of recovery, pointing to new investor confidence and continued growth as key indicators that the country is “turning a turn”.
Speaking at the opening of Ninety One's new offices in Cape Town on Thursday, President Ramaphosa said the investment was a strong vote of confidence in the country's economic future.
“This investment signals a long-term commitment to South Africa and its future. It is a solid demonstration of confidence in our economy, and a step forward in our national ambition to become a global financial services centre,” he said.
President highlights improvement in economic indicators including four consecutive quarters gross domestic product(GDP) growth, a stable national debt and three years of primary budget surplus.
He said these developments, along with structural reforms, are positioning South Africa as an attractive destination for global investors.
“Around the world, investors are taking a fresh look at South Africa as an emerging market with strong institutions, sound policy and a solid track record of reform.
President Ramaphosa said, “The solid improvement in our economic performance we are now experiencing is the result of a sustained, multi-year effort to reform our economy and fix what was broken.”
The financial sector, he said, remains the cornerstone of the economy, contributing more than one-fifth gross domestic productGenerates approximately 25% of corporate income taxes, and supports approximately three million jobs.
The President said the government is working to strengthen the sector and establish the country as a global financial services hub, especially for companies looking for a base for African and emerging market operations.
He also pointed to progress in key reforms, including improvements in energy supply, rail and port operations, and efforts to attract private sector investment.
“The power crisis is over, investment is increasing and the economy is creating more jobs.
“We have implemented far-reaching reforms in our energy sector to enable private investment and are moving to restructure Eskom to create a level playing field for competition and establish a fully independent transmission system operator,” he said.
The government plans to spend more than R1 trillion on infrastructure over the next three years, to unlock more private investment through public-private partnerships and financing mechanisms.
President Ramaphosa said collaboration between government and business has been central to the country's recent progress, particularly in stabilizing state-owned enterprises and restoring governance after years of state capture.
He said milestones such as South Africa's removal from the Financial Action Task Force gray list and its first sovereign credit rating upgrade in nearly two decades were further signs of economic recovery.
The President described Ninety One's expansion as an example of the strength of South Africa's financial sector and local talent.
“With its long and established presence domestically along with a global footprint, Ninety One can play a leading role in elevating the prominence, stature and scale of our financial sector.
“This company is proof that we have more than enough, our local talent is world-class and our ambitions are in the right place,” he said. – SAnews.gov.za