Investment conference boosted digital economy, says Ramaphosa

President Cyril Ramaphosa has hailed the recent South Africa Investment Conference as a success, saying it has boosted the country's digital economy.

The conference, held last week, was the fifth instalment of the annual event aimed at attracting investment in the country.

Ramaphosa said in addition to commitments for significant investments in data and telecommunications infrastructure, there were also announcements about investments in the mining, manufacturing, energy, property, logistics and food and beverage sectors.

“These announcements took the total amount of investment commitments made over the first five years of our investment drive to over R1.5-trillion. This exceeds the target of R1.2-trillion we made in 2018,” said Ramaphosa.

The president said while these investments would contribute to economic growth and job creation, the investments in the digital economy would propel South Africa to a new era of innovation and progress.

“Not only is the digital economy important for growth, but it is also vital to the provision of key services such as education, social services and health care.”

Ramaphosa said while Stats SA's 2021 general household survey revealed that more than three quarters of households have internet access — with 97% having at least one mobile phone — recent surveys indicated higher speeds and improved mobile and fibre infrastructure were helping to narrow the digital divide.

“Since the first South African investment conference in 2018, investments in the digital economy have grown exponentially. Over the past five years, we have seen total investment commitments of R200bn in our country's telecommunications network by Vodacom, MTN, Telkom, Rain and Liquid Telekom.”

He added that faster fibre and 5G rollout had made the economy more competitive, as more connectivity solutions had helped businesses to emerge and expand.

“To take advantage of this inward investment and see it increase, the country has to resolve the electricity crisis and the theft and destruction of ICT infrastructure,” he said.

Referring to issues raised by investors and mobile network operators at the investment conference, Ramaphosa said the government was working with business and other social partners to address these challenges and improve the operating environment.

“We are also forging ahead with the structural reforms that are so critical to improving our economic competitiveness,” he said.

The president referred to an announcement by the minister of communications and digital technologies to publish the rapid deployment policy, which would help accelerate the deployment of telecommunications infrastructure.

“To boost the job creation potential of these investments, the national skills fund will soon launch a new model for a demand-led skills development, which will provide R800m to fund training for unemployed young people in digital skills,” he said.

Ramaphosa said as the country looked forward to increased investment, the structural reform process gathered pace and measures to end the energy crisis began to bear fruit, South Africa would be able to position itself at the forefront of the digital economy in Africa.  

TimesLIVE

Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.