KURUMAN, NORTHERN CAPE — Minister in the Presidency, Khumbudzo Ntshavheni, addressed concerns over potential investor retreat from South Africa, firmly stating that the country continues to retain robust investor confidence despite rumors of major corporations withdrawing.
According to South African Government News Agency, speaking at the Presidential District Development Model (DDM) Imbizo in Kuruman, recent reports of companies like Shell exiting South Africa after more than a century are not indicative of a broader trend. "There are no investors that are leaving the country in droves. You are dealing with commercial transactions which companies look at. One company comes out, another one comes in," she explained. The minister specifically referenced Volkswagen's recent R4 billion investment in a new automotive line set for production between 2027 and 2029 as evidence that significant commercial investments continue.
Ntshavheni highlighted the Boegoebaai green hydrogen project as a key example of ongoing foreign and local investment. "The President has mentioned Boegoebaai. There are international investors that have partnered with us on Boegoebaai and there are South African companies themselves," she noted, emphasizing the importance of domestic investment as a signal of confidence to the international community.
The minister also addressed broader economic initiatives and challenges, including the strategic focus on green hydrogen and electric vehicle manufacturing mentioned by President Cyril Ramaphosa in the State of the Nation Address earlier this year. Ramaphosa announced plans to establish a Special Economic Zone in the Boegoebaai port to drive investments in green energy, citing substantial interest from the private sector.
In response to concerns about load shedding and logistic issues affecting businesses, particularly in freight rail, Ntshavheni reassured that the government is making progress in resolving these challenges. She refuted claims that load shedding was driving investors away, noting improvements in the energy sector and logistics performance by Transnet in Durban.
Ntshavheni concluded by reaffirming South Africa's position on the global stage, referencing the World Bank's rating of the country as the largest economy in Africa, competitive in attracting investments.