JOHANNESBURG – South Africa's latest investment conference secured record commitments, but official figures show less than half of previous pledges have been fulfilled and translated into economic activity.
The sixth South Africa Investment Conference (SAIC), held in Johannesburg at the end of March, secured 81 confirmed investments totaling 889.8 billion rand ($54 billion) – part of a five-year drive targeting 3 trillion rand by 2030.
In his weekly newsletter on Monday, President Cyril Ramaphosa hailed the result as evidence of new confidence in Africa's most industrialized nation, especially given global headwinds such as rising protectionism, geopolitical tensions, particularly the Middle East conflict, and economic uncertainty.
Pledges and conversion into projects
However, data from the Presidency and the Department of Trade, Industry and Competition show that of the nearly 1.5 trillion rand pledged since the first SAIC in 2018, only 634 billion rand – less than 42% – had flowed into the economy by March 2026.
While investment announcements rarely translate fully into projects, South Africa's conversion rates are low by international standards. Consultancy McKinsey found that 60%–80% of announced foreign direct investments globally are typically completed.
South Africa's economy has grown at just 1%-2% per year for decades, far short of the pace needed to reduce unemployment, which is stuck above 30%. Policy uncertainty, years of systemic corruption confirmed by a corruption investigation in 2022, and dilapidated energy and transportation infrastructure have weighed on growth.
Investment levels remain soft. Alistair Ruiter, special adviser to the president on investment promotion, told Reuters that gross fixed capital formation – a key measure of spending on machinery, buildings and infrastructure – has reached around 15%. This is well below the 20-25% range typically associated with sustained growth in emerging markets, according to World Bank and IMF benchmarks.
Focus on tourism and digital economy among others
Commitments announced at the March conference included tourism, property, green economy, chemicals, with ICT and the digital economy receiving the largest share of commitments. These include new FDI as well as reinvestment and expansion plans by local and multinational companies.
Of the 415 billion rand of confirmed company-led pledges, almost two-thirds came from companies headquartered in South Africa – including 60 billion rand from petrochemical company Sasol, 24 billion rand from V&A Waterfront Development Company and 21.8 billion rand from telecoms operator MTN.
International companies including UAE logistics firm DP World, China's Green Minerals & Metals and US firm Visa and ride-hailing firm Uber, as well as companies from Britain, India and France also made commitments.
“Green shoots are starting to emerge,” Ruiters said. “But not enough.”
Despite the government's optimism, global sentiment towards South Africa has cooled amid rising concerns over political uncertainty, infrastructure bottlenecks, rising costs and global trade tensions. The country dropped from 7th to 12th in the 2026 Kearney FDI Confidence Index, which surveys more than 500 senior executives of multinational companies.
Reuters said Ramaphosa has tried to counter negative perceptions by engaging directly with business leaders during foreign trips to New York, Kuala Lumpur, Ho Chi Minh City, Dubai, Abu Dhabi, Jakarta, Sao Paulo and Brasília.
Ruiters said foreign investment remains important for scale and confidence, with the presence of companies such as Toyota, Uber and Meta's undersea cable project aimed at boosting connectivity on the continent sending a strong signal. “You want the big brands to come.”
Pursuance of reforms
South African Reserve Bank data shows foreign direct investment has declined every year since 2022. The country recorded a net outflow of 41.4 billion rand in 2025, meaning more capital left than entered.
Excluding 2021, average annual inward FDI over the past five years – where Prosus bought about 45% of Naspers led to a surge in inflows – was about 69.2 billion rand, or 0.3% of GDP, well below the rates needed for sustained growth.
Ruiters, a former director general of the then Department of Trade and Industry, said the momentum of reforms focusing on electricity, logistics, water, criminal justice and local government should continue beyond President Ramaphosa's tenure.
“CEOs come and go. Presidents come and go. But there should be institutions and processes in the country that are kind of locked in, belted out, and running.”
($1 = 16.5384 rand)