South Africa Secures R70.8 Billion in Investment at KZN Conference

The KwaZulu-Natal Investment Conference, held in Durban, has reaffirmed South Africa’s position as a prime investment destination, securing R70.8 billion in investment pledges from 16 local and multinational companies. These commitments span key industries such as manufacturing, tourism, automotive, logistics, and property development.

With this significant investment drive, the province is setting the stage for the 2025 South African Investment Conference, further boosting investor confidence in South Africa’s economic growth.

SAPPI Commits R10.8 Billion to Business Expansion

Among the notable investors is SAPPI, a leading South African pulp and paper manufacturer. The Johannesburg-based company has pledged R10.8 billion to upgrade its operations, enhance business performance, and align with sustainability goals.

SAPPI’s investment will improve profitability, operational efficiency, and sustainability, reinforcing its position as a key player in the global pulp and paper industry.

Strong Financial Performance and Market Growth

SAPPI’s recent financial performance has been impressive, with the company experiencing a surge in share prices following leadership changes. In September 2024, Graeme Wild took over as CEO of Sappi Southern Africa from long-serving executive Alex Tiel.

The company reported better-than-expected fourth-quarter earnings, driven by strong demand in North America and South Africa, as well as higher dissolving pulp prices.

According to SAPPI’s latest financial report:

• Q4 adjusted EBITDA: ZAR 2,033 million, marking a third consecutive record performance.
• Key drivers: Variable cost savings and strong demand for dissolving pulp (DP).
• Dividend: On November 6, 2024, SAPPI’s board approved a dividend of 14 US cents per share to be paid this month.

Why This Investment Matters for South Africa

The R70.8 billion pledged at the KZN Investment Conference is a major boost for South Africa’s economy, supporting job creation, infrastructure development, and industrial growth. As South Africa’s official marketing agency, Brand South Africa continues to highlight these successes to attract further investment.

Key Takeaways from the KZN Investment Conference:

R70.8 billion pledged by local and multinational companies.
SAPPI’s R10.8 billion investment strengthens operations and sustainability.
Strong Q4 performance for SAPPI, driven by high demand and cost savings.

As the country gears up for the 2025 South African Investment Conference, the momentum from the KZN event signals growing investor confidence in South Africa’s economic future.

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