Investment Climate News

LOCALISATION: What is Realistic?

Localisation has been highlighted by the government as a key policy aim during the recovery of the economy from the Covid-19 crisis. Organised business in Nedlac has been asked to substitute 20% of non-petroleum goods imports for domestically produced goods as soon as possible. This study assesses whether such a target is realistic through three parts. First, a literature review was conducted, placing such a policy aim within the context of South Africa's own history of industrial policy and with evidence from other countries. Second, a quantitative study looks at how the import, manufacturing, and capacity data can give us insights on such a target and whether it is possible to reach it. Third,  125 firms were surveyed across sectors to understand views on localisation and how fast they believe they can localise, what the constraints are, and a range of related matters.

ANNUAL DIGEST 2020 SA-EU trade under the SADC-EU EPA

This second annual digest reflects on the trade partnership between South Africa and the European Union (EU) largely within the context of the Coronavirus 2019 (COVID-19) pandemic. During the 2020 year, the global economy experienced a record-level contraction, with South Africa’s economy shrinking by a historic 7% in 2020. However, despite this record decline in economic activity, South Africa’s nominal trade with both the EU and the rest of the world has shown remarkable resilience. The SADC-EU Economic Partnership Agreement (EPA) has continued to support bilateral trade between South Africa and the EU.

TIPS FDI Tracker update on Foreign Investments - THE REAL ECONOMY BULLETIN

Foreign direct investment projects The TIPS FDI Tracker monitors foreign direct investment projects on a quarterly basis, using published information. The total investment value from projects captured this quarter was R68.9 billion. Projects captured in the fourth quarter are a mix of those announced at the 2020 Investment Conference and others identified outside the conference. The third South African Investment Conference took place in November 2020 against the backdrop of the COVID-19 depression. It picked up 50 pledges from foreign and local companies, totalling approximately R109 billion. Of these, 21 pledges totalling R36.1 billion came from foreign companies. As with previous conference pledges, some of the investments are already in the pipeline, rather than entirely new projects. The FDI Tracker for quarters three and four 2020 will provide a detailed analysis.

Powerfuels and Green Hydrogen

Powerfuels are synthetic gaseous or liquid fuels based on renewable hydrogen, which is hydrogen obtained by the electrolysis of water using renewable electricity. Powerfuels are therefore a renewable alternative to fossil fuels (as their use avoids net emissions of CO2), to be used in sectors which may be difficult to decarbonise and may not be easily driven directly by renewables-based electricity.

Review of the Draft Public Procurement Bill

On 19 February 2020, the National Treasury released the Draft Public Procurement Bill (“Draft Bill”) for public comments. The overriding purpose of the Draft Bill is to introduce a single regulatory framework for local, provincial and national government and state-owned enterprises; and to create the necessary institutions to ensure the integrity of the procurement system and to address potential violations. The Bill also replaces critical provisions in the existing Preferential Procurement Policy Framework Act of 2017 relating to the scoring and award of government tenders.

COVID-19 Export Impact Survey

The Department of Trade, Industry & Competition is conducting a COVID-19 Export Impact Survey to identify emerging challenges faced by exporters as a result of the COVID-19 pandemic.

Investment Climate in South Africa - Discussion Paper

Some of the key issues faced by European Union businesses in South Africa have been highlighted in an Investment Paper, looking at sentiment and highlighting enormous opportunities for trade with the EU.

Investment Climate in South Africa

At the 7th European Union – South Africa (EU-SA) Summit held in November 2018, both parties recognised the EU as “a significant and long-term investor in South Africa”.

Informal Analysis of South Africa

On 27 August, National Treasury (NT) released an unexpected discussion paper titled "Economic transformation, inclusive growth, and competitiveness: Towards the Economic Strategy for South Africa”