South African companies have significant cash reserves that can help stimulate economic growth in the country, Pres. Cyril Ramaphosa.
He says in his latest newsletter by 2017, large South African companies listed on the JSE had reserves of around R1 400bn.
Instead of keeping this money in reserve or to fund investments elsewhere, it can be used to grow the South African economy and create jobs.
Ramaphosa says he is very proud of South African companies that, last week, with the government’s second international investment conference in Johannesburg, were not ashamed to open their wallets and invest heavily in the South African economy.
In 2018, South African companies pledged R157bn at the first investment conference.
This year, this amount rose to R262 billion.
The conference has attracted a total of R663 billion in the last two years. That’s just over half of the R1 200bn target the government hopes to raise over a five-year period.
“Local businesses are at the forefront of our investment effort and the scale of their promises shows they have accepted the challenge.
“We are very proud that local companies not only want to be part of economic growth but also to promote an inclusive economy,” writes Ramaphosa.
“Many of these companies are now multinational giants that have extensive investment portfolios on the African continent and elsewhere. Their promises of investment in South Africa show they are proudly South African. “
Last week’s investment conference yielded a total of R363bn in investment, with the possibility of an additional R8bn still to be finalized.
These investments could create direct jobs for 412 000 people over the next five years.
“A stronger economy will allow us to have more money available to spend on social issues, tackle poverty and make sure no man, woman or child is starving.
“It will provide more opportunities for our youth to learn skills and gain experience, and for others to become business owners, entrepreneurs, and industrialists,” writes Ramaphosa.
