Confidence in SA’s economy is shown when local companies invest: Ramaphosa

Four years ago, Sappi Ltd CEO Steve Binnie pledged, to president Cyril Ramaphosa at his first presidential investment conference, to stimulate SA’s economy through a multi-billion investment project.

On Tuesday, Ramaphosa presided over the launch of Sappi Saiccor’s largest expansion and environmental project undertaken in over 80 years in SA.

Addressing guests at the R7.7bn project launch at Sappi’s Umkomaas plant on the KwaZulu-Natal south coast, Ramaphosa said it marked the fulfilment of the promise made by Binnie in 2018.

“We convened that first investment conference with the aim of raising R1.2-trillion in new investments over five years.

“Now, four years later, we have achieved more than R1.1-trillion worth of investment commitments. Today, we are seeing just what those commitments mean in reality. We are witnessing an investment in infrastructure, people, innovation, technology and sustainability.”

Ramaphosa said the project is an investment in community development, in the local economy, in SA’s export capacity and in the industrialisation of the country’s economy.

He said he was pleased the facility supported SA’s national carbon-reduction goals.

“I am told that by using the best available technology, the aim is to halve CO2 fossil fuel emissions, significantly reduce plant CO2 emissions, reduce water consumption and reduce waste to landfill from coal ash by 48%.

“It is noteworthy that Sappi continues to use recycled and sustainable wood sources to produce circular and innovative bio-based products. Through this mill, Sappi is taking a product from SA’s soil and producing dissolving pulp.

“More than that, this mill is producing employment, developing skills and adding economic value to an important raw material.”

Ramaphosa said he wanted challenges facing Sappi, including poor rail infrastructure, road infrastructure and delays in operations at Durban’s port, to be addressed.

“To realise Sappi’s potential, we need to remove the constraints that hamper the overall competitiveness of our manufacturing industries.

“We are forging ahead with the measures I announced in July — alongside the fundamental reform of our energy sector — to resolve the long-standing challenge of reliable electricity supply.

“We have made progress in addressing challenges with our rail and port operations.

“Several companies have been shortlisted to be considered as partners at the container terminals at the ports of Durban and Ngqura.

“Investments in port and related infrastructure to improve efficiencies will improve the competitiveness of locally manufactured products in global markets.

“While foreign direct investment is important for our economy, the greatest demonstration of confidence is when our own companies take that lead.

“The realisation of Sappi’s investment here at Umkomaas sends the strongest signal that our home-grown multinationals are taking the lead in investing in our economy,” said Ramaphosa.

Ramaphosa was joined in the ceremonial ribbon-cutting ceremony at the Umkomaas mill site by trade, industry and competition minister Ebrahim Patel, premier Nomusa Dube-Ncube, and economic development, tourism and environmental affairs MEC Siboniso Duma.

Patel said Sappi had the potential to do more if port and rail logistics in KwaZulu-Natal improved.

He said the Sappi project and the earlier launch of a state-of-the-art manufacturing plant at Hesto Harnesses manufacturing facility in KwaDukuza, marked over R9.1bn in investment in the province.

“The two events amplify a common message, they show how KZN is benefiting from Ramaphosa’s call.”