PwC’s Economists analysis on Presidential Investment pledges

President Cyril Ramaphosa recently stated at the Presidential Investment Summit that “nearly R290 billion” had been pledged by both local and international companies seeking to participate in the President’s 5-year US$100 billion year plan. According to calculations by PwC’s Strategy& economists this investment will add around R338 billion to SA’s GDP over the period 2019-2024.

In addition, an estimated 825 000 direct and indirect jobs (on average per year) will be created or sustained, and generate an estimated R59 billion in additional government revenue. The investment will enable some R468.8 billion in potential production from 2025 to 2035. This production would, over the ten-year period, add an estimated R505 billion to SA’s GDP and generate an estimated R133 billion in government revenue.

These are some of the key highlights from a new analysis conducted by PwC’s Strategy& economists on the potential economic impact of investment pledges made at the SA Investment Conference in October 2018.

The estimated economic impact highlighted in the analysis is only associated with the investment spending between 2019 and 2024. Long-term economic contributions are focused more around the additional production in the various sectors, once the investment phase is completed.

Please click here to view the PwC’s Strategy& report ‘Realising the Vision’, which provides more information on the potential economic benefits of the investment pledges.