President Cyril Ramaphosa says the African continent
boasts huge potential for economic growth ¡V making it a
lucrative option for keen investors. Addressing
delegates at the Japan-Africa Public-Private Forum at
the Sandton Convention Centre on Thursday evening, 3 May
2018, President Ramaphosa said: ¡§Africa is open for
business¡¨.
¡§In 2017, Africa¡¦s exports to Asia as a whole were worth
around US$64 billion, of which Japan accounted for
around US$8,3 billion.
¡§However, the current basket of exports is very much
commodity-based, exposing African countries to price
fluctuations and denying them the opportunity to extract
additional value from these commodities,¡¨ said President
Ramaphosa.
The President highlighted diversification and the shift
towards greater production of intermediate and final
consumer and industrial products as the next step for
African economies.
He said while government was a key role player in
growing economies, it could not take on the task alone.
The forum was attended by ministers, deputy ministers
and business leaders from Africa and Japan who came
together to discuss ways to strengthen trade relations
in a mutually beneficial manner.
¡§This forum is about cooperation and collaboration, not
only between different countries, but also between the
public and private sectors in those countries. The
social and economic challenges on the African continent
will not be effectively addressed if governments and
business do not work together.
¡§Similarly, we will not be able to expand trade and
investment relations between Japan and African countries
unless our respective governments, state-owned entities
and other public institutions are aligned with the work
of the private sector,¡¨ said the President.
Africa must learn from Japan
He called on African countries to take a hold
of the opportunity to learn from Japan in order for
their economies to be more effectively integrated into
the global economy.
¡§In pursuing its economic development, Africa can learn
much from Japan¡¦s Kaizen philosophy, with its emphasis
on productivity improvement, efficiency, support for
SMMEs and skills development,¡¨ said President Ramaphosa.
While the President emphasised the transfer of skills,
the need to create jobs by tapping into the young
unemployed population and growing the manufacturing
sector as a fertile ground for growth, he added that
investment was central to the realisation of the plans.
¡§A necessary condition for all these efforts to succeed
is a massive increase in investment in the continent.
¡§As a country, we have realised that we will not be able
to grow our own economy and reduce unemployment and
inequality without a massive increase in both domestic
and foreign direct investment,¡¨ said the President.
Stable country ready for investment
He made reference to his new investment drive that aims
to generate at least US$100 billion in new investment
over the next five years to the country, adding that
South Africa was a stable country ready for investment.
¡§The country has stable institutions, a thriving
democracy, an independent judiciary and a strong
commitment to the rule of law.
¡§South Africa boasts an advanced and competitive
financial and professional services sector, backed by a
sound regulatory and legal framework.
African Continental Free Trade Area
Turning his sights on the Africa continent, the
President said the establishment of an African
Continental Free Trade Area unlocked opportunities to
create a single continental market for goods and
services, with free movement of business persons and
investment.
¡§It is expected to enhance competitiveness at the
industry and enterprise level through exploitation of
opportunities for production at scale, continental
market access and better reallocation of resources,¡¨
said the President.
Fourth Industrial Revolution
While Japan is among the top 10 investors in South
Africa with 280 companies such as Toyota, Isuzu and NGK
operating in South Africa, President Ramaphosa said the
financial and technology sectors were areas for growth.
¡§The increase in digitisation and use of cutting-edge
technology and innovation are critical factors for
Africa to ensure it takes advantage of the Fourth
Industrial Revolution.
¡§There is also great potential in financial services.
African economies need capital and Africa¡¦s people need
banking. We therefore invite Japanese banks to expand
their presence on the African continent, which, among
other things, would greatly facilitate trade and
investment between Japan and Africa,¡¨ said President
Ramaphosa.
Japan-Africa Public-Private Economic Forum
The Japan-Africa Public-Private Economic Forum, hosted
by South Africa, was organised by the Government of
Japan and the Japan External Trade Organisation.
The forum, which was attended by business executives and
representatives of government from African countries and
Japan, sought to assist and strengthen investment
between Japan and Africa within the public and private
sectors.
Plenary and thematic sessions tackling key issues in
Africa's development formed the core programme of the
forum. It was accompanied by several side events,
including business networking.
In addition, the Japan Fair showcased Japanese products
and other events, including special sessions focusing on
specific themes such as investment promotion and
technology transfer and entrepreneurship.
In South Africa, Japan remains a major trading partner,
with more than 140 companies active in the country and
over 150 000 jobs created.
¡V Source:
SAnews.gov.za |