Investment pledges will add about R338bn to South Africa’s economic growth – PwC
The proposed investment pledges announced during the Presidential Investment Summit in October could add about R338-billion to South Africa’s gross domestic profit (GDP) between 2019 and 2024, says PwC.
President Cyril Ramaphosa stated at the conference that “nearly R290-billion” had been pledged by both local and international companies seeking to participate in the President’s five-year $100-billion investment plan.
PwC predicts an estimated 165 000 direct and indirect jobs (on average yearly) will be created or sustained, and will generate an estimated R59-billion in additional government revenue, if the pledged funds are invested.
The investment is also expected to enable about R468.8-billion in potential production from 2025 to 2035. This production would, over the ten-year period, add an estimated R505-billion to South Africa’s GDP and generate an estimated R133-billion in government revenue, it forecasts.
The estimated economic impact highlighted in PwC’s analysis is only associated with the investment spending between 2019 and 2024. Long-term economic contributions are focused on the additional production in the various sectors, once the investment phase is completed.