South Africa Courts French Investment to Boost Economic Growth

Deputy President Paul Mashatile.

In a bid to attract greater investment and boost economic growth, Deputy President Paul Mashatile has called on business leaders to expand trade between South Africa and France.

During a business conference in France, Mashatile emphasized that South Africa is open for business, highlighting the country's proactive measures to facilitate ease of doing business.

"We must move faster," Mashatile said. "So, we are busy in South Africa now looking at regulations, our procurement policies and legislation to ensure there's an ease of doing business."

South Africa is undertaking an ambitious energy transition, creating space for strategic investments in renewable energy infrastructure, green hydrogen, and battery energy storage.

Abundant in South Africa, these minerals offer opportunities for beneficiation and ethical extraction, with French companies invited to bring advanced technologies and sustainable practices.

South Africa is developing a regulatory framework to encourage investment, research, and commercialization in this sector, which has the potential to spur industrial innovation, revitalize rural economies, and create thousands of jobs.

The South African government plans to spend over R940 billion on infrastructure over the next three years, revitalizing roads, bridges, dams, and ports, and modernizing airports.

Mashatile's call for investment comes as global rating agency Moody's downgraded South Africa's growth forecast for 2025 due to sluggish economic activity and deteriorating global trade relations. However, President Cyril Ramaphosa's recent meeting with US President Donald Trump at the White House aims to repair ties and enhance trade between the two nations.

With France being the 14th largest investor in South Africa, and over 400 French companies already operating in the country, Mashatile sees vast potential for growth in trade relations between the two nations. By collaborating with French companies, South Africa aims to unlock immense potential and create shared prosperity for both nations.