SA on path of recovery - Cabinet

Cape Town – Cabinet believes South Africa is on a path to recovery and continues to be “a viable investment destination”, said Jeff Radebe, Minister in the Presidency responsible for Planning and Monitoring, on Friday. 

Briefing the media for the last time before the festive season, Radebe said South Africa has seen a number of investment initiatives in the past year. “[This] demonstrates confidence by the international investment community in South Africa’s economy. 

Radebe said new trade opportunities opened market access and the initiatives yielded increased sales of manufactured value-added exports by R1.2bn, which brings the cumulative total for the year to R3.8bn. 

READ: How SA can attract more foreign investment 

In addition, foreign direct investment could potentially yield R13.1bn, particularly in the energy and chemicals sector. “This brings the total potential FDI for 2016 to R30bn,” Radebe said. 

Economists and analysts however have warned that South Africa has seen significant outflows of foreign direct investment recently, despite attracting the same level of inflows. 

Terminal Operator’s Agreement 

Transport Minister Dipuo Peters directed state-owned entity Transport to amend the Terminal Operator’s Agreement to allow the Strategic Fuel Fund to handle cargoes of liquefied petroleum gas at the Saldanha Bay Harbour, Radebe said. 

“The Strategic Fuel Fund’s current lease and licence will also be extended with a minimum of 25 years to provide commercial and operational certainty for sustainable investment in the oil and gas sector.” 

READ: Central Energy Fund grilled over oil deal 

In March this year, the Strategic Fuel Fund came under fire when it surfaced that it sold off 10 million barrels of crude oil without the permission of Treasury. 

The deal is currently the subject of an investigation, but as a rule the SFF is supposed to keep twenty days’ worth of oil stockpiles in reserve for emergencies. 

Visit from Zambian president

President Edgar Lungu from Zambia has been visiting South Africa on 8 and 9 December and Cabinet expects that a so-called Joint Permanent Commission will emanate from the state visit which gives effect to bilateral agreements. 

“The two countries have good bilateral and economic relations,” Radebe said, “with Zambia remaining one of South Africa’s top three trading partners on the continent.”