President Cyril Ramaphosa noted on Monday the increase in domestic investment by black industrialists in South Africa’s economy, as he reflected on the success of the fourth South Africa Investment Conference, held last week.

The total value of new investment commitments for the next five years stands at R1.14-trillion.

Ramaphosa specifically noted domestic investment, pointing to more black industrialists entering the economy.

In the last five years, government has invested about R32-billion into nearly 800 black industrialists and entrepreneurs.

Ramaphosa pointed out that this year, those industrialists pledged investment into mining and steel production, automotive component manufacturing, consumer goods, bulk fuel storage, and ship-building and repair in the Saldanha Industrial Development Zone.

“As the commitments turn into projects, they will create jobs and improve livelihoods not only in the cities and metros, but also in small towns and rural areas. This will spur the growth of local economies, leading to more opportunities and to the improvement of people’s quality of life,” he said.

Currently in the United Arab Emirates, Ramaphosa is hoping to attract investors from the region, pointing to the diversity of South Africa’s economy.

He said government was encouraged by the commitments made at this year’s conference, adding that the investments would bolster employment and transformation.

Business Leadership South Africa CEO Busi Mavuso described the fourth conference as “the best so far”, noting that genuine reforms had been made.

She was also pleased with Ramaphosa’s candid evaluation of the challenges facing the country.

“He was pragmatic and did not trivialise our problems, from crime and corruption to high unemployment. That frankness gave him credibility that has been further helped by his clear recognition that the private sector is essential to resolving those problems. This is a government that acknowledges the need for pragmatism given the environment we are facing,” she said.

Ramaphosa’s call for public-private partnerships was also a highlight for Mavuso, but she said, particularly for infrastructure investment, that the policy environment and economic conditions must be ideal.

She said while high global commodity prices were of benefit currently, some making profit off the high prices were not expanding production, owing to low confidence in policy.

“They are uncertain that future regulatory changes may damage the returns they can earn on that investment. In that context, the rational decision is to rather just give the cash back to their shareholders. That is why you need good policy as well as good economic conditions for investment to happen. People need to be confident both that global economic conditions will be positive and that the local business environment will be positive. Otherwise they won’t take the risk,” Mavuso stressed.

She said while mining and logistics could improve the outlook, mining was still hampered by policy confusion. She also pointed out the weaknesses of the country’s ports and rail.

However, despite the challenges, she said her confidence was improved owing to the conference.