KNYSNA NEWS - Deputy President Shipokosa Paulus Mashatile told Knysna municipality and other Garden Route municipalities that investing in infrastructure was a prerequisite for attracting foreign investment.

"Investors all over the world want to come to South Africa," he said in his keynote address at the highly successful Regional Investment Conference in Knysna on Friday 15 November, which was attended by deputy ministers, including Deputy Minister of Finance Ashor Sarupen, business leaders, mayors and councillors.

"Invest in infrastructure, and they will come. Infrastructure is critical."

'SA open for business'

Mashatile said he had told company executives in Europe that "South Africa is open for business", during visits there with government ministers.

"The number of (potential investors) in France, who want to come and see South Africa, has tripled.

"I'm going to tell them, now that I see you (Garden Route municipalities) have plans, to come to the Southern Cape."

Mashatile said before the national elections in May leaders in Europe had thought South Africa might be about to enter a period of political instability.

Those concerns were later allayed when he and and members of the Government of National Unity visited Ireland.

'GNU in action'

"People were worried. I told them to relax, we're okay. They could see the Government of National Unity in action.

"The Government of National Unity (GNU) is working ... in the main, we are focusing on growth. We are beginning to see growth, but the numbers are not what we want yet.

"Our debt (country's debt to GDP) has been growing; we're going to see how we can deal with that."

The GNU had started an initiative aimed at reducing the red tape foreign companies had to deal with before making investments, and it was "dealing with the challenges in ports. Freight rail must be working. The sooner we deal with Transnet, the better".

'Bigger than World Cup'

An important driver of foreign investment would be South Africa's taking over the presidency of the G20 next year and the country hosting the G20 Leaders' Summit.

"Hosting the G20 is going to be bigger than when we hosted the (Soccer) World Cup," Mashatile said.

"Knysna is the home of tourists - do everything to continue to attract them."

Some of the earlier speakers representing business and local government highlighted the importance of broadening the SMME sector in the Southern Cape, and investing in infrastructure.

Key role of SMMEs

"I'm excited that you are focusing on SMMEs. In Italy, the biggest driver of the economy is small business," Mashatile said.

Through the Human Resource Development Council of SA, he said, the government and the private sector had established programmes to provide skills to young people, to enable them to, among others, start small businesses, and the enacting of the National Small Enterprise Amendment Act, which established a new entity, the Small Enterprise Development Finance Agency, further assisted young entrepreneurs.

Mashatile said such an investment conference should be held in the region every year. "This region is very important to us. Government and the private sector must work together - and create an annual programme that we are able to review, to see how far we have come."

'Untapped potential'

Deputy Finance Minister Sarupen told the audience of about 200 people that "South Africa is ready to drive meaningful investment into key regions, especially those with untapped potential like the Garden Route".

Sarupen detailed the work the National Treasury had been undertaking in Knysna. 

"Since 2021, the National Treasury's Neighbourhood Development Partnership Programme (NDPP) has been actively collaborating with the Knysna municipality.

"This partnership reflects a proactive approach to development, focusing on infrastructure improvements, spatial planning, and investment attraction.

Plan for Knysna

"The NDPP has supported the creation of an Investment Plan for Knysna's CBD and secondary nodes. Each of these nodes, such as Hornlee, Nekkies, and Heidevallei, has unique challenges and opportunities.

"The plan is comprehensive, identifying projects with the potential to attract private sector investment and create vibrant economic hubs."

He said several high-impact projects in Knysna had been completed or were under way.

'Multiplier effect'

Notable projects were the White Location Multi-Purpose Centre Phases 1 and 2, and the Rehabilitation of Concordia Road Phases 1 and 2.

"These infrastructure projects have not only improved quality of life for Knysna residents, but they have also attracted significant private sector investment.

"For example, the construction of the R40 million Kunjani Concordia Mall was directly influenced by infrastructure improvements in the area.

"This mall has brought new businesses, job opportunities, and essential services to the community, demonstrating the powerful multiplier effect of strategic public investments."

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